D2C! This probably seems like a mathematical expression and may have you wonder about a possible solution for it. Wonder no more, it simply means Direct-to-Consumer e-commerce.
The traditional way of business, whereby products go through the manufacturer/producer – to a wholesaler – to a distributor – to a retailer and finally to the consumer, used to be what obtains, but change is fast shaping the face of business.
Direct-to-Consumer (D2C) is a process of selling products directly to its end users without the intervention of an intermediary.
In D2C the manufacturer/producer of a product does not have to worry about staff, remuneration and probably a physical store.
People are now in the habit of ordering things online from the comfort of their couch.
This has really contributed to the growth of D2C in this technology age, cutting out the role of middlemen in business transactions.
The D2C business is thriving and is not without its benefits. One essential benefit of this model of business is the fact that manufacturers/producers are in full control of their business, they know everything from how their products is packaged to the point of marketing.
They know exactly what their customers want and are always ready to dance to the consumer’s tune. Hence, consumers have first-hand experience with the product and its manufacturer/producer.
It brings about a mutual relationship between the consumer and manufacturer/producer, thereby encouraging customer feedback which is very important in the growth of any business.
The relationship that exists between these two parties aids a true understanding of what is and is not required of a product or service.
This kind of relationship does not exist in the traditional model of business transactions.
Also, there is control over brand reputation because the manufacturer is aware of what goes into the product, from the research phase to the point of purchase.
Marketing of product by the manufacturer puts him in control of his sales strategy so there is a direct contact with the consumer.
It gives you control over how your product is received and perceived. No one can take care of your business like you would.
Despite its many advantages, there is nothing that exists without any disadvantage or challenge.
A major challenge in the D2C business model is having to compete with retailers. Retailers have experience and know-how to convince their customers to patronize whatever products they have in store, unlike a manufacturer who is new in the market.
However, consistency on the part of the manufacturer/producer will eventually pay.
When the business begins to gain more customers, meeting up deliveries may be a challenge. This is because of the nature of the model in use.
So there might be a reason to hire more hands to help out in order to meet up with consumers’ requests as and when due.
Cyber security is another major challenge of the D2C business model. Due to the fact that the business is conducted online, it is exposed to the threat of cybercriminals and possibly loss of data.
D2C is however the future of e-commerce.
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