D2C (direct to consumer, also DTC) is a business model in which a brand sells its own products directly to end customers through its website, app or stores instead of through intermediaries.
Why it matters
Selling direct gives the brand control over pricing, presentation and customer data, and it avoids the retailer's margin. The trade-off is that the brand takes on marketing, fulfillment, returns and support itself, and it must pay to attract each customer.
Example
A skincare brand sells a 30 USD serum on its own site. Selling through a retailer might mean giving up a large share of the price, while direct sales keep it but require ad spend and shipping. The brand also gets each buyer's email address for repeat offers.
Common mistakes
- Assuming D2C is cheaper; acquisition, shipping and returns can cost more than a retailer's cut.
- Relying on one paid channel for all new customers.
- Ignoring customer retention after the first order.
Related
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