Direct to Consumer Sales: What it Means for Your Business

Direct to consumer (D2C) eCommerce sales may face many challenges, but there are ways to overcome them and ensure your business stays visible within a competitive market. Here’s what you need to know about the current D2C eCommerce market and what to be hopeful for in the future. 

Challenges are present

Challenges are currently present for those who are in the business of working in a D2C eCommerce market. These challenges have been ever-present, with many consumers having a mindset that supports larger manufacturing agencies such as Amazon. To combat this, D2C agencies need to ask themselves how they can incentivize clients to choose their website over a larger manufacturer’s website. Other challenges lie within the fact that many people are not looking for non-essential goods right now, which is much of what D2C businesses provide. These challenges are not predicted to last forever since D2C eCommerce was on a steady upward scale until 2020, growing three to six times the rate of ecommerce sales as a whole. Currently, the 2020 growth of D2Cs specifically is low, but we are also only four months into the year while facing economic hardships due to an unexpected pandemic.  

The challenges and lack of growth for D2D eCommerce sales should not discourage people who are in that industry. New buyers in the future are predicted to increase their spending. Spending is predicted to grow by 12.7 percent compared to last year. It is also predicted that in 2020, 87.3 million people over the age of 14 in the United States will make a purchase on a Direct to Consumer platform. That is a 10 percent increase from last year! The positive predictions for the market related to D2C eCommerce sales means that now is the time to make your brand well known.

Support local business

Considering the current state of the world, many communities are encouraging each other to support local businesses, to shop small, and to consider what your community has to offer. There is a market for people who don’t want to support large manufacturers and instead want to support their local or small businesses. Bearing this in mind, it’s important to ask yourself questions such as: What can I do to incentivize clients to purchase directly from your site? What can I offer my clients that the large manufacturers can’t? Consider factors such as pricing, subscription services to offer clients, loyalty rewards, rewards for signing up for monthly delivery, etc. 

As always, Marketing Relevance is here to help you with all of your marketing needs! Contact us today or call 847-259-7312 to find out how we can help you reach success.