What is D2C ecommerce? | D2C vs B2C
August 16, 2022
What is D2C ecommerce?
No, that’s not a typo.
We’re all familiar with the terms B2C and B2B by now, but you may be less familiar with the concept of D2C business.
Whilst D2C brands have always existed, this type of selling method seems to have exploded in popularity as of late. More and more consumers are beginning to examine their online shopping habits, and being more selective about who they buy from. This has created more opportunities for D2C ecommerce businesses to thrive.
D2C: what does it mean?
First things first, what does this term actually mean? D2C stands for direct to consumer. And it pretty much does what it says on the tin. It refers to businesses that sell their products directly to consumers, cutting out the middleman.
D2C vs B2C – what’s the difference?
Many people think that D2C and B2C are the same thing. After all, they both refer to selling to a customer as opposed to another business. But that’s where the similarities end.
The B2C model relies on a retailer working between the manufacturer and the customer. A typical B2C business may sell products from a range of manufacturers – think about how many different brand names you see on the shelves of your local supermarket.
When it comes to D2C, the manufacturer is the retailer, cutting out the need for any intermediaries by manufacturing, promoting, selling and shipping their products straight to customers.
The benefits of D2C ecommerce
Connect with customers
The clue is in the name – D2C businesses are in a position to speak directly to their customers. This allows them to cut through the noise and form connections. At the end of the day, if you’re the one designing and making the products you’re selling, then no one is in a better position to sell and market them than you. This naturally builds trust between the brand and the consumer, which can go a long way in building customer loyalty and earning repeat sales.
Selling your own products directly to your target customer offers a lot more control over various aspects of a business.
When selling through a third party retailer for example, your product may be sold alongside similar products from your competitors. Whether a customer chooses yours or theirs is out of your control – there’s not a whole lot you can do in this situation to ensure your product is the one they add to their baskets.
The D2C selling process also tends to be more streamlined, and with convenience being at the top of many consumers’ lists when it comes to online shopping, this certainly gives D2C retailers an edge.
From the research phase to purchase, D2C businesses are involved every step of the way, allowing them to better manage the customer experience and as a result, their brand’s reputation.
Quality over quantity
The B2C business model tends to favour selling in bulk, and with so much attention on waste and the environmental impact of our online shopping habits, many are trying to figure out how to become a more sustainable ecommerce business.
D2C businesses are in a better position on quality when it comes to the product and its packaging, making it far easier to reduce waste and use greener materials from start to finish.
The younger generations are more selective than ever before about where they spend their money, paying close attention to brand values and company ethos. Millennials and Gen Z are endeavouring to shop local and support smaller businesses, and authenticity certainly plays into their decision to do so.
Since D2C brands are marketing their products directly to consumers, they are able to communicate their own messaging, ensuring they stay true to their original values and goals. When you hand over control to a third party, you can’t always guarantee that they’ll fully understand your vision.
Whilst there are many benefits to the D2C selling method, it doesn’t come without its challenges either. Juggling every aspect of the business from designing to shipping, plus customer service and marketing, can be a lot to manage, especially as your brand begins to grow. You’re also going up against bigger retailers with large teams and decades of experience behind them.
That’s where we come in. We’ve worked with ecommerce businesses across varying industries and sizes, and we know the key to success is sustainable growth. From ecommerce website development to digital marketing, it’s important to have a support network who understands what you do and where you want to go.
Need a hand scaling our ecommerce business? We’d love to chat. Send us a message and we’ll be in touch.