The direct to consumer business model allows the manufacturers to sell their products directly to consumers from their own web store. This model gets rid of the retail distributors that would usually distribute the products.
Below are some examples of successful direct to consumer businesses:
- Bark Box
- Dollar Shave Club
Using this model has many benefits for both the seller and the buyer. For example, the seller has a higher control over their margins. They are also able to personalize their product range more and are even able to maximize their profit by cutting out a distribution vendor.
The direct to consumer model has a number of challenges for the sellers, too, though. First, the seller is responsible for all aspects of the shipments, which includes monitoring the orders and packaging the products. They also lose the support of large resellers, so they have to work harder to stand out and raise their brand awareness.
Every business model comes with ups and downs. It’s up to each individual business to decide which strategy works best for them.