--- title: "Why Retail Brands are Gunning for Direct-to-Consumer Sales During COVID-19" id: "3123" type: "post" slug: "why-retail-brands-are-gunning-for-d2c-sales-during-covid" published_at: "2020-06-16T08:42:22+00:00" modified_at: "2025-09-02T14:28:36+00:00" url: "https://locus.sh/blogs/why-retail-brands-are-gunning-for-d2c-sales-during-covid/" markdown_url: "https://locus.sh/blogs/why-retail-brands-are-gunning-for-d2c-sales-during-covid.md" excerpt: "Key Takeaways The Coronavirus apocalypse is perhaps the biggest blow to mankind in a long time. It has transformed societies, governments, healthcare systems, economies, and our lifestyles in unforeseen ways. Day-to-day life still remains at a standstill in several parts..." taxonomy_category: - "E-Commerce" - "Retail & CPG" taxonomy_post_tag: - "Coronavirus" - "Distribution" - "Omnichannel Retailing" - "Retail Supply Chain" --- #### [E-Commerce](https://locus.sh/blogs/category/ecommerce-fulfillment/) , [Retail & CPG](https://locus.sh/blogs/category/retail-and-cpg/) # Why Retail Brands are Gunning for Direct-to-Consumer Sales During COVID-19 [Shweta Sarma](/author/shwetasarma/) Jun 16, 2020 5 mins read ## Key Takeaways - Direct-to-consumer (D2C) sales are projected to grow 24.3% to $17.75 billion in 2020, as consumers increasingly prefer purchasing directly from manufacturers’ websites during the pandemic. - The D2C model reduces logistics costs by eliminating middlemen and secondary mile shipping, while enabling safer delivery by minimizing package handling touchpoints between manufacturer and consumer. - Direct distribution allows brands to build stronger customer relationships through personalized offerings, faster issue resolution, and direct feedback channels. - Locus’s smart logistics solutions help retail enterprises optimize D2C distribution with efficient route planning and last-mile delivery management capabilities. The Coronavirus apocalypse is perhaps the biggest blow to mankind in a long time. It has transformed societies, governments, healthcare systems, economies, and our lifestyles in unforeseen ways. Day-to-day life still remains at a standstill in several parts of the world, but businesses must continue to sell goods and services, and find innovative yet profitable ways to withstand competition during these tough times. In industries such as retail and consumer goods, last-mile operations have changed drastically. Social distancing and unprecedented lockdowns have given a big boost to omnichannel selling and E-commerce marketplaces, owing to the growing digital lifestyle of consumers and the convenience and safety of selling online. At the same time, a number of distribution methods are becoming popular these days, right from cross-docking to [pop-up distribution centers](https://locus.sh/blogs/how-pop-up-distribution-centers-can-solve-covid-19-warehousing-challenges/) and curbside deliveries. The Direct-to-Consumer Sales distribution model is also gaining popularity in retail and CPG, as brands are embracing cost-effective and safer modes of distribution to the consumer. ## What is the Direct-to-Consumer Retail Model? Direct-to-Consumer retail is a fast-track method of reaching consumers, skipping middlemen involved in the distribution process. In a D2C business model, manufacturers or retailers sell directly to the consumer without third-party retailers, wholesalers, and distribution outlets. In 2019, D2C E-commerce sales reached $14.28 billion in the US. In 2020, with the pandemic on the rise, [eMarketer](https://www.emarketer.com/content/us-direct-to-consumer-ecommerce-sales-will-rise-to-nearly-18-billion-in-2020) forecasts that sales will grow by 24.3%, to $17.75 billion. Big retail brands like Walmart and Kroger are banking on this trend by optimizing their online storefronts and selling directly to consumers via E-commerce. In fact, [59% of consumers](https://www.coredna.com/blogs/direct-to-consumer) prefer to search for products directly on the manufacturer’s website, with 55% preferring to make purchases the same way. ## Benefits of Direct-to-Consumer Sales Model for Retailers in COVID-19 Times Going Direct-to-Consumer Sales has several advantages, and retail brands are stepping up to meet the evolving needs, expectations, and [behaviors of the COVID-19 customer](https://locus.sh/resources/covid-19-trends-in-consumer-goods-supply-chain/) . - **Cost-Effective Retail Distribution** In the traditional distribution model, a manufacturer typically sends finished products to wholesalers or retail stores, from where they are sold to the actual consumer. By implementing a D2C distribution model, enterprises can [save the logistical costs](https://locus.sh/blogs/last-mile-delivery-costs-bringing-order-to-chaos/) involved in the secondary mile, by avoiding shipping and transporting to wholesalers, and directly shipping goods to the customer location. Companies also save the added cost of [beat planning](https://locus.sh/blogs/optimizing-fmcg-sales-beats/) and sales reps visiting retail stores to replenish stocks. - **Safe Doorstep Delivery** Ever since the pandemic has struck, consumers are concerned about the quality and safety of the things they are buying and the way they are handled. In D2C distribution, goods are shipped and delivered directly from the manufacturing location to the consumer’s address, minimizing the number of places a package travels to and the number of people who handle it. D2C distribution, therefore, **ensures safer doorstep delivery** during COVID-19 times. - **Brand-Consumer Relationship** Direct distribution to consumers allows brands to offer them personalized product options, resolve issues quicker, and ensure a satisfying fulfillment experience. It also allows consumers to know their brand well, share their shopping experiences, product feedbacks, and grievances directly with the brand. By selling directly to consumers, retailers can build a strong relationship with their customers as well as an improved brand image in the market. - **Faster Last-Mile Operations** In D2C distribution, manufacturers and big retail brands simply take orders online and deliver faster, using their own logistics arms or with the help of 3PL distributors. By skipping middlemen involvement and wholesaler distribution, enterprises can speed up the [last-mile delivery process](https://locus.sh/use-cases/last-mile-delivery-routing/) by shipping goods to consumers directly as and when an order is placed. ### In Conclusion Direct-to-Consumer selling was gaining popularity in logistics over the years, and the pandemic has made it even more popular among retailers. Enterprises across electronics, apparel, cleaning supplies, healthcare supplements, pet supplies, canned food, and groceries are now going the D2C path to ensure a sound brand presence during the pandemic. If you too are considering adopting the **Direct-to-Consumer distribution method in your omnichannel strategy**, it is perhaps best to start with an online storefront and begin deliveries in high-density order areas. ***Locus helps enterprises in retail and manufacturing with fast and efficient Direct-to-Consumer distribution with smart logistics solutions. Request for a demo from our experts now.*** [https://locu.sh/37yMzPT](https://locu.sh/37yMzPT) Download E-book on [Direct to Consumer- The trend of the future](https://locus.sh/ebooks/direct-to-consumer-the-trend-of-the-future/) for free! [https://locus.sh/resources/direct-to-consumer-business-model-vs-traditional-retail-business-model/](https://locus.sh/resources/direct-to-consumer-business-model-vs-traditional-retail-business-model/) Infographic by [Locus](https://locus.sh/) Share this infographic by using this embed code: ``` Direct-to-Consumer Vs Traditional Retail Business Model - Infographics
Infographic by Locus ``` MEET THE AUTHOR Shweta Sarma Shweta is a seasoned business author and writes about logistics, supply chain management, and SaaS technologies. She occasionally writes on Quora and loves to take on baking experiments in her free time. ### Related Tags: [Coronavirus](https://locus.sh/blogs/tagged/coronavirus/) [Distribution](https://locus.sh/blogs/tagged/distribution/) [Omnichannel Retailing](https://locus.sh/blogs/tagged/retail-industry/) [Retail Supply Chain](https://locus.sh/blogs/tagged/retail-supply-chain/) [https://locus.sh/blogs/route-optimization-software-for-small-and-mid-sized-fleet/](https://locus.sh/blogs/route-optimization-software-for-small-and-mid-sized-fleet/) #### [Route Optimization](https://locus.sh/blogs/category/route-optimization/) ## [How to choose Route Optimization Software for Small and Mid-Sized Fleet?](https://locus.sh/blogs/route-optimization-software-for-small-and-mid-sized-fleet/) [Lakshmi D](https://locus.sh/blogs/author/lakshmilocussh/) Jun 12, 2020 Key Takeaways The dispatch planning process has become quite complicated, with a varied mix of daily customer orders and multiple options for vehicles and routes. This complexity has made delivery companies search for good route optimization software for their small and mid-sized fleets. Route planners and logistics managers attach a lot of significance to route […] [Read more](https://locus.sh/blogs/route-optimization-software-for-small-and-mid-sized-fleet/) [https://locus.sh/blogs/walmart-partners-with-shopify/](https://locus.sh/blogs/walmart-partners-with-shopify/) #### [News](https://locus.sh/blogs/category/news-en/) ## [Walmart Partners with Shopify to Launch Walmart Marketplace for Online Sellers](https://locus.sh/blogs/walmart-partners-with-shopify/) [Team Locus](https://locus.sh/blogs/author/team-locus/) Jun 18, 2020 Walmart Partners with Shopify to enable Shopify's sellers to integrate their Shopify store with Walmart Marketplace, to boost product visibility. [Read more](https://locus.sh/blogs/walmart-partners-with-shopify/) ## Why Retail Brands are Gunning for Direct-to-Consumer Sales During COVID-19 - Share - [Print](javascript:window.print()) - [Download](#) - [Schedule a Demo](https://locus.sh/schedule-demo/) ### Is your team spending more time on fixing logistics plan than running the operation? - Agentic transportation management from order intake to freight settlement - Route optimization built on 250+ real-world constraints - AI-driven dispatch with automatic execution handling 20%Cost Reduction 66%Faster Planning Cycles [Schedule a demo](/schedule-demo/) Insights Worth Your Time #### [General](https://locus.sh/blogs/category/general/) ## [Locus 2026 US Consumer Survey: Generative AI isn’t Just Changing How Consumers Shop, it’s Breaking the Demand Patterns US Retail Was Built On](https://locus.sh/blogs/generative-ai-shopping-effect-retail-fulfillment-operations-locus-q2-2026-consumer-survey/) [Ishan Bhattacharya](https://locus.sh/blogs/author/ishan_locus/) May 29, 2026 #### [General](https://locus.sh/blogs/category/general/) ## [Embedded vs Bolted-On AI: The Architecture Question European Logistics Buyers Are Asking](https://locus.sh/blogs/embedded-vs-bolted-on-ai-european-logistics-platform-architecture-business-benefits/) [Aseem Sinha](https://locus.sh/blogs/author/aseem_locus/) May 21, 2026 #### [General](https://locus.sh/blogs/category/general/) ## [Hybrid Fleet Management: How Owned, 3PL, Gig, ICE, and EV Capacity Actually Operate at Most Enterprises](https://locus.sh/blogs/three-workforce-fleet-reality-owned-3pl-gig-drivers/) [Aseem Sinha](https://locus.sh/blogs/author/aseem_locus/) May 7, 2026 #### [General](https://locus.sh/blogs/category/general/) ## [US Returns Hit $850 Billion in 2025: Why US Retailers Are Restructuring Reverse Logistics in 2026](https://locus.sh/blogs/850-billion-us-returns-ai-routing-reverse-logistics-2026/) [Ishan Bhattacharya](https://locus.sh/blogs/author/ishan_locus/) May 7, 2026