10 reasons brands are selling D2C (Direct to Consumer)

10 reasons brands are selling D2C (Direct to Consumer)

Anna Loveridge profile image
Anna Loveridge
7 months ago

4 minutes read

UK online retail sales have increased from a 5% share in 2008 to a 30% share as of March 2021 (Office for National Statistics). Due to a global pandemic in 2020, businesses were forced to rapidly adapt to selling online and uncertainty in supply chains increased existing trends of selling Direct to Consumer (D2C).

 

 

Brands growing with D2C 

 

UK-based Beavertown Brewery, made 85% of its sales through pubs, bars, and restaurants before the global pandemic hit and the company lost all revenue from this income source. The brewery made the strategic decision to restructure their business model and sell D2C via their online site, which until then had only brought in a maximum of £1000 per month. Adapting a D2C approach, Beavertown achieved a 1000% increase in sales from their online store and saved the future of the company entirely.

 

 

 

 

Another example of a brand building resilience and bringing financial growth is athletic brand, Nike. As one of the pioneers of D2C, they converted their business approach long before the pandemic. This strategic move was driven by the desire to cut ties with partners that didn’t represent their brand in the way that suited their ethos and culture. In 2011, D2C sales made up only 16% of Nike sales: fast forward to 2020 and almost 40% of its sales came from D2C with further estimated growth to 60% by 2025.

 

Although the D2C trend has been around for several years: research by ChannelAdvisor and CensusWide discovered that as a result of the COVID-19 crisis, almost half (47%) of brands shifted to selling products via their own channels to stay afloat. Nearly 100% of respondents said that selling D2C was the most important direction for their brand to grow.

 

 

Benefits of selling D2C 

 

Some of the biggest brands leading the way include Nike, Huel, Everlane, Heights, Beavertown, and Hellofresh. For many of them, selling D2C has opened up the opportunity to create a global customer base in which they own. 

 

 

Here’s a list of benefits for brands selling D2C: 

 

  1. Opportunity to build customer relationships

  2. Owning customer data and loyalty 

  3. Understanding of customers preferences for product suggestions

  4. Control over brand messaging and reputation 

  5. Enhancement to customer experience (CX)

  6. Ability to adapt to market trends

  7. Multichannel sales for entering the global market 

  8. Shorter and more controlled supply chain 

  9. Cheaper supply chain costs for the customer

  10. Visibility and tracking of all stages of the product cycle

 

 

 

 

Why choose automation when selling D2C? 

 

A strong technological infrastructure that streamlines manual processes will create a seamless experience for consumers. With 55% of consumers going D2C due to ‘convenience’ and ‘ease of use’, any friction in the buying process could result in loss of sales and poor brand loyalty. 

 

The simplest solution for D2C is automation. Finding the right apps and partners to automate the entire process is essential for managing the entire process: from listing a product on your website to the fulfillment of orders. Automation is particularly important when managing multiple channels that span regional sites in multiple countries.

 

 

Sennheiser using automation for success

 

Due to growth in sales via both their Shopify site and marketplaces, Sennheiser came to roseta.io with a need to manage all data from one centralised source of truth. With a Shopify to ChannelAdvisor API Integration, they now manage their orders, products, inventory, and customer data from one place. When a customer purchases a Sennheiser product via Amazon (or any other marketplace), the order passes through ChannelAdvisor to their Shopify store and onto the Sennheiser warehouse to be sent out by Sennheiser’s own fulfillment team. Amazon is the platform for reaching a wider global audience, yet Sennheiser has autonomy over their product listings, pricing, the customer experience, and the efficiency of processing the order.

 

 

Our Top Integrations for selling D2C

 

The most popular API Integrations for selling D2C to a global audience:  

 

  • Shopify + ChannelAdvisor 

  • Magento + ChannelAdvisor

 

 

 

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