Introduction to D2C

What is D2C?

D2C or ‘direct-to-consumer’ is a business model which enables manufacturers to sell their products directly to end customers. D2C companies look after all aspects of the product like manufacturing, packaging, marketing and shipment, giving them total control. Using the D2C model helps manufacturers increase their profit margins by cutting out the middleman.

How does D2C work?

Manufacturers list their products on their brand website and enable customers to shop online. The purchasing process requires customers to select the product, add their shipment address, and usually pay online in advance. Once the order is placed, it is the duty of the manufacturer to ensure that the product is delivered safely to the customer’s doorstep.

Types of D2C business

There are three major D2C business models that companies may opt for

Pure-play

Companies rely exclusively on the D2C business model to sell their products.

Hybrid

Companies combine D2C marketing with offline retail to reach their customers.

Omnichannel

Companies combine D2C, offline stores and online marketplaces to sell their products.

Benefits of the D2C business model

Here are some of the key advantages of adopting the D2C model

Opportunity to increase sales

D2C marketing gives companies a chance to increase their revenue by adding an extra sales channel to their business. Companies can reach customers in diverse geographies including foreign markets through their website, resulting in expanded market opportunities.

D2C results in higher profit margins for companies as it enables them to cut out middlemen like distributors and retailers. Moreover, the customer usually makes the payment in advance at the time of placing the order which eliminates payment delays.

D2C gives companies direct access to customer data like email, phone number, location, purchasing interests etc. This allows them to learn more about consumer behaviour, while optimising existing products and creating new product lines based on the information.

D2C makes it easier for manufacturers to try out new products as they can produce them in small quantities and launch them on their online store. They can use the feedback they gather from their customers to improve the product and launch it in the market on a larger scale.

Difference between B2C and D2C business models

The B2C model caters to end customers through multiple sales channels where middlemen may play a role (e.g. retail shops and e-commerce marketplaces). While in the D2C model, the company caters directly to end customers through orders on their website, allowing them to eliminate the middleman and increase profit margins.

Difference between B2C and D2C business models

How can Boost 360 help my D2C business?

How can Boost 360 help my D2C business?

Boost 360 is a comprehensive, end-to-end website builder and digital marketing solution for your D2C business. From helping you build your own brand website to enabling online orders for your products and collecting digital payments, Boost 360 empowers you to set up your D2C business, promote your business online, and facilitate online purchases.

D2C business: Past & future

Evolution of D2C

The D2C model has changed the nature of business by eliminating middlemen to build deeper relationships with customers, placing price and value directly into the hands of consumers.

In recent years, many companies have added a D2C model to their business to add to their existing channels. This trend is likely to grow as companies look for new ways to reinvent themselves in the face of rapid changes in the market.

The road ahead

Over the next decade, D2C marketing will be focused on four key areas to stay relevant. First, they must adapt to new consumer behaviour. Second, they must connect with their customers and have meaningful relationships.

They must also utilise technology like mobile apps and voice search to expand and create new value. And finally, they must shift from selling products to selling experiences.

Frequently Asked Questions

Why should I start a D2C business?

There are many advantages to starting a D2C business like higher profit margins and wider geographical reach. With Indian consumers getting increasingly comfortable with e-commerce, a D2C website enables them to source your products directly from your warehouse.

You can get more customers for your D2C business by adopting a comprehensive digital marketing strategy including SEO, search marketing, social media marketing and other methods.

The internet and mobile phones have transformed the way people shop. Today, you can buy and sell almost anything through your phone. But many brands still struggle to adapt to the digital age. By having a website and a mobile app, you not only enable your customers to order your products easily but also create the impression of a modern and tech-savvy business.

No. You can implement a D2C model quickly and affordably with the Boost 360 app.

Boost 360 is a comprehensive website builder and digital marketing solution which can help you create a customised online store with user-friendly navigation. With Boost 360, you can:

  • Make it easy for customers to shop online and receive delivery of products.
  • Establish your brand on social media and online.
  • Create a seamless marketing platform and establish your business credibility.

This depends on the number of products. Businesses with less than 10 products may opt for the Online Basic Plan. While businesses with more than 10 products may opt for the Online Classic or Online Advanced Plan, depending on the requirements.

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Our experts are always here to assist you with any questions you may have, and help you get your business online. If you are interested in knowing more about how Boost 360 and YouTube can combine to help you promote your business online, feel free to connect with us. We would be happy to show you how you can use both these applications to drive online marketing.

Our experts are always here to assist you with any questions you may have, and help you get your business online. And if you want to further improve your online skills, head over to Boost Academy. You'll find many relevant resources there.

Our experts are always here to assist you with any questions you might have, or even help you get your business online.

Contact Us Explore boost academy