What is Direct to Consumer Selling?

Direct to Consumer or D2C selling is a retail strategy wherein brands sell merchandise directly to consumers without involving distributors/wholesalers.

Manufacturer

Manufacturer

Advertising / Website

Advertising / Website

Consumer

Customer Doorstep

D2C Fulfillment Options

In-House Fulfillment Fulfillment by E-commerece marketplace 3PL Provider
Managing in-house fulfillment without help of 3PL provider Compaines selling their items through Amazon/any other marketplace. Amazon underakes fulfillment activities Outsourcing the entire fulfillment process to the thirs-party logistics provider
Level of control:
High
Level of control:
Low
Level of control:
Medium
Scalability:
Low
Scalability:
High
Scalability:
High
Affordability:
Low
Affordability:
Low
Affordability:
Medium
Best suited for starter D2C business or small E-commerece stores Best suited for smaller or emergency brands Best suited for large and growing e-commerce stores
Not suited for bigger and growing companies Not suited for big brands as there are possibilities of cloning Not suited for small and starter D2C business

Direct to Consumer: The Rising Popularity

Brands are taking the D2C path now more than ever before

  • From 2016 to 2019, Direct to Consumer E-commerce grew at three to six times the rate of overall E-commerce sales. (eMarketer)
  • D2C sales are forecasted to account for $17.75 billion of total E-commerce sales in 2020, up 24.3% from the last year. (eMarketer)
  • Globally, D2C startups have raised between $8 billion to $10 billion in known venture capital across more than 600 deals since the start of 2019. (TechCrunch)
  • Today, more than 57% of consumer brand manufacturers are embracing D2C selling. (DigitalCommerce360)
  • 52% of DTC brands experienced surges in demand since the start of the pandemic. (Forbes)
  • By 2023, 75% of D2C brands are expected to offer subscription-based services. (MultiChannelMerchant)

Consumers, too, prefer buying directly from brands

  • By 2022, the number of DTC E-commerce buyers will reach a milestone at 103.4 million. (eMarketer)
  • A third of U.S. consumers plan to do at least 40% of their shopping from D2C companies in the next five years. (DiffusionPR)
  • 81% of consumers say they’ll make at least one purchase from a D2C brand within the next five years. (DiffusionPR)
  • More than one in four — 27% American consumers will purchase D2C products in the next five years because of greater convenience. (DiffusionPR)
  • Two-thirds of consumers expect the ability to connect directly with brands. (DigitalCommerce360)

The Growing Role of Efficient Logistics in Direct-to-Consumer Fulfillment

Challenges in Direct-to-Consumer Selling

Warehousing and inventory management

Warehousing and inventory management

Packaging and shipping merchandise

Packaging and shipping merchandise

Helps with efficient Supply chain visibility

Helps with efficient Supply chain visibility

Identifying delivery addresses

Identifying delivery addresses

Last-mile routing and task allocation

Last-mile routing and task allocation

Top 10 Logistics Trends That Will Impact Companies in 2020 and beyond

Top 10 Logistics Trends That Will Impact Companies in 2020 and beyond

The Scope of AI in your D2C Supply Chain

Effective warehousing and network design planning

Effective warehousing and network design planning

Smart day-to-day route planning and rider allocation

Smart day-to-day route planning and rider allocation

Efficient fleet tracking and Improved supply chain visibility

Efficient fleet tracking and Improved supply chain visibility

Accurate geocoding and address verification

Accurate geocoding and address verification

Reduced fuel consumption and operational costs

Reduced fuel consumption and operational costs

Real-time order tracking and customer transparency

Real-time order tracking and customer transparency

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Schedule a meeting with Locus

How can Locus help manage your logistics?

  • Locus’ proprietary geocoding engine converts the fuzziest of the addresses into precise geographical coordinates thereby helping your on-ground executives locate addresses easily.
  • Digitize all your operational variables such as fleets, delivery persons, etc to come up with the best route plan every day.
  • Track your orders in real-time with the Locus Live Dashboard. Locus’ last-mile delivery app Locus On The Road (LOTR) helps delivery partners process orders.
  • Visualize and tweak your scheduled plans via three key metrics— geography, time, & vehicle(fleet)—with a birds-eye view of your entire operations.
  • Build your own reports and analyze important parameters that you need to make key decisions.

Join Industry Leaders:

$100 M+
Logistics costs reduced
100+ Years
Planning time saved
6300 + Tonnes
GHG emissions reduced

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