One of the biggest trends in the e-commerce industry and online shopping brands in 2021 is the direct-to-consumer business model. Manufacturers and CPG (Consumer Packaged Goods) brands are desperately trying their best to enter their brands into this model. If you are interested in knowing what the hype is all about and want to take your designer brand online shop directly to your customer without any middleman in between, then this article is for you.
In case you aren’t already motivated enough to dip your toes into the D2C model, then here are some interesting statistics that will help you make up your mind;
Nearly ⅓ of consumers have reported that they have bought directly from the designer brand online shop manufacturer in the past year. More than 70% of D2C (direct-to-consumer) hot brands online shops have increased their marketing budget as compared to 60% of traditional retailers. The most exciting statistic of all is that the majority of consumers (more than 55%) would rather prefer to buy their branded items online shopping directly from the manufacturer rather than a retailer.
What is direct-to-consumer?
D2C is one of the most low-barrier entries into the eCommerce industry chosen by the best online shopping brands. As the name suggests, this model allows all kinds of manufacturers and top online shopping brands to sell their products directly into the hands of their consumers.
Traditionally, manufacturers and top online shopping brands had to do a lot of work and deal with a ton of wholesalers, distributors, retailers and other such middle men. But with the direct-to-consumer business model, the best online shopping brands can supply their products directly to the consumer. This is possible because of the internet and the rise of branded items online shopping. Now big brands can eliminate the middleman through online shopping with the use of their website, paid advertisements on Google & Facebook, etc.
There are a plethora of advantages in best online name brand shopping sites going D2C, the most obvious one being that lifestyle brands online shopping can save a lot of money which would otherwise be spent on the commission of retailers, distributors, and wholesalers.
Another major advantage is that the hot brands online shop have a direct contact with the end consumers, which gives them a much better understanding of their target audience. This gives the big brands that are into online shopping the freedom to experiment with A/B tests and other such marketing experiments. Which in turn, helps them to get data and feedback from their consumer which is vital for increasing sales & revenue.
Why are consumers so hyped about shopping directly from manufacturers?
As mentioned in the above statistic, the majority of consumers prefer buying directly from the manufacturer of the brand name through online shopping. Customers feel that the best online name brand shopping sites give a lot more encompassing and elaborate information on their website as compared to the retailers who sell the products in their stores or on their e-commerce websites. Therefore, it makes more sense to buy directly from the website where you are researching the product than to go to another website to make a purchase.
How to take your online shopping brands direct-to-consumer?
So you think you are ready to take your brand directly to the consumer? If so, then here are 5 great ways to get started in 2021.
- Focus on a content-first approach.
If you are a manufacturer with a brand name online shopping website, then chances are that your customers are already coming to your website to know more about your products. But if you are looking to get into the direct-to-consumer model then you must create content for your lifestyle brand online shopping from a content marketing perspective. A great way to start content marketing for your brand is to focus on creating content that not just describes your products but also that adds value to your customers life (in context of your product).
- Simplify the choice & decision making process.
Having a simple catalogue on your ecommerce website can drastically help your customers make better decisions about what they should buy. Check out this incredible product strategy by casper, they have a very simple selection of mattresses on their website. In fact, when they started out they had just one product and they managed to make more than $1 million in sales during their first month and $100 million during the first couple of years – just by understanding the consumer’s pain points and creating a simple product offering for it.
- Consider having a subscription-based model.
Companies like the Dollar Shave Club, Honest Company, etc. are some of the most famous direct-to-consumer brands that have successfully implemented a subscription model as their primary offering. This kind of business model works exceptionally well if you are manufacturing consumables such as groceries, canned foods, medical equipment or other such products. It is perhaps one of the best strategies to ensure that you get repeated business, hence increasing the lifetime value of your consumers.
- Have a good return policy in place.
When you have a clear, assuring, and risk-free return policy then your customers are more likely to trust you and make high-ticket purchases on your e-commerce website. Take Amazon for example, they have a great 10-15 day return policy with no questions asked. This gives their customers a lot of confidence when they shop online for products like home and kitchen, office items, toys, and many more and it also builds a lot of trust – therefore encouraging a long term relationship between the consumer and the brand.
- Go all in one SEO & SEM
Again coming back to the mattress manufacturing company Casper – they have absolutely dominated their direct-to-consumer business strategy in terms of SEO. You can clearly see the number of SEO efforts that they have put in. You will find the ranking for any search term conceivable that remotely hints at a user interested in buying a mattress. This has given them a tremendous amount of website traffic that ensures a steady supply of visitors (customers) to their e-commerce portal. They are also spending a hefty amount on PPC campaigns on Google search to ensure that they rank above their competition.