Direct-to-consumer selling is an increasingly popular option for businesses of all sizes. Startups familiar with crowdfunded projects and small item runs know that handling the product from its manufacturing to its delivery provides an opportunity to create an utterly unique shopping experience. However, direct-to-consumer selling isn’t feasible or correct for every business model. Here are three factors to consider before deciding that selling D2C is suitable for your brand.
The Expectations of Your Audience
It’s important to start with the expectations of your audience. Startups who are yet to engage their audience daily may rely more on research and market data than personal experiences. Still, even data can play a crucial role in your business strategy’s development.
Online shopping is familiar to many customers, but this means that customer expectations are also higher than ever before. In many industries, such as the cosmetics or device industries, the unboxing experience is nearly as valuable as the product performance. Many customers also feel that the customer service provided by a small business must remain as capable as the service at large retailers.
Whether creating return channels or keeping up with changing demand, startups taking the reins and selling D2C must consider as many facets of their audience’s expectations as possible.
Your Currently Available Resources
Selling D2C requires you to already have the resources you would otherwise gain through third parties like retailers. For new businesses looking to find their footing and start off selling D2C, it’s crucial to understand every moving part of the machine. A powerful website, impeccable marketing strategy, efficient warehousing system, and reliable fulfillment options are all must-haves. Sometimes for small businesses, the most surprising part of selling direct-to-consumer is how many staff members you need to keep the products moving.
Direct-to-Consumer’s Scalability
One of the most important factors to consider before deciding to sell D2C is your ability to scale your business after taking control of so many areas at once. After all, there is a significant difference between basic e-commerce and fully direct-to-consumer business strategies.
Consider how often your business’s demand, staffing, and general resources fluctuate. Some industries must fight harder against the tide of seasonality and, in turn, require more financial means to maintain the numerous responsibilities of D2C selling year-round. People with experience operating D2C are among the best assets for new business owners trying to understand the strategy’s sustainability in their specific market.