As a business owner, it's important to keep up with the latest strategies to boost your eCommerce brand.
Why? Because the eCommerce industry is fast-paced. The digital world is constantly changing... so some strategies that worked for you... might not work anymore.
And because you need to keep yourself updated with fresh ideas... you should always look out for new strategies to try.
That's what we'll talk about today!
- What is DTC or direct-to-consumer?
- 3 common reasons why DTC is becoming more popular.
- 7 DTC eCommerce trends you should try to grow your online business
Are you ready? Let's deep dive! But before the juicy part of this blog, let's have a refresher.
What is a direct-consumer business model?
A direct-to-consumer business model means the brand or manufacturer sells directly to the customers.
Unlike traditional retailers, no middlemen or third parties are involved in DTC, like logistics, retailers, suppliers, distributors, etc.
Now, why are there many DTC brands popping up here and there? Let's see...
3 Common advantages of a direct-to-consumer business model
There are many reasons why more brands opt for a direct-to-consumer business model, but let's talk about three. First, you can...
1. Eliminate extra costs
Since you're running your entire business, you can eliminate charges from other service providers. For example, you don't have to pay for logistics.
Why? Because you'll be handling that. You'll also handle the packing and shipping. So, you don't need to pay anyone to do them for you.
The next one is you can...
2. Market your products
You're in charge of selling and managing your products... which means you are also the one marketing them. This is important because you can control the brand messaging.
Because let's say you're a retailer. You sell products from a manufacturer. But you're not in charge of the brand messaging of the brand.
The only thing you can control is your business as a retailer. Not the whole brand. So, through having a direct-to-consumer business model, you can...
3. Take control of your business
Let's take consumer packaged goods or CPG brands, for example. Even if they're reputable brands, they don't have total control of their products once they reach the distributors or retailers.
They can only control marketing, advertising, PR (Public Relations), and other promotional activities so more people will buy their products.
But if you're a direct-to-consumer business, you have control over everything. I'm sure you want to get to the best part... so, let's talk about...
7 DTC eCommerce trends to grow your business
The DTC space is becoming more saturated, so you need to check out these DTC trends to help you get one step ahead!
1. Strengthening influencer collaborations
Influencer marketing is not exactly a new digital marketing strategy. But it's an effective way of promoting your DTC brand.
Because you can reach more people who might have an interest in purchasing your products. That's if you collaborate with the right influencers.
Let's talk a look at MVMT. It's a DTC business that sells classy and high-quality watches. They created a branded hashtag called #JoinTheMVMT.
In this Instagram post, you can see an influencer posting some details about the brand. There's also an exclusive discount code for followers who want to purchase as well.
And there are 1,000+ likes on this Instagram post. Just imagine a thousand or more people discovering your brand?
So, that's an example of a DTC brand utilizing influencer marketing. And you should, too. Another DTC trend is...
2. Highlighting DTC brands' value proposition
Many DTC brands are already doing this... in fact, even other traditional and online retailers make sure to highlight their value proposition.
This is important because the DTC space is evolving, and it's challenging to stay unique. Other DTC brands want to make a name for themselves.
And gone are the days when brands are just talking about themselves instead of the benefits for target customers.
That's why it's critical to highlight the benefits of your DTC business. Let's see an example from Warby Parker.
If a customer doesn't want to leave home just to try on frames... Warby Parker got them. And that's the first thing you'll see when you land on their website.
Warby Parker can encourage more customers to shop in their eCommerce store with this feature!
Remember, there are a lot of DTC businesses around the world... but that doesn't mean you can't be unique. Just make sure to highlight the benefits you can give to your customers.
One of the most exciting DTC trends is...
3. Traditional retailers are embracing the DTC model
Remember when I talked about consumer packaged goods or CPG? Well, they're not entirely switching to the direct-to-consumer model. But some of them are expanding to DTC!
An example is from Gillette. Gillette's products are usually sold in retail stores... but now, they're giving more choices by online shopping directly from their website.
This shows that even reputable brands need to adapt to the DTC trends. As I said... the digital world is evolving. Both traditional and DTC companies need to keep up.
That's why more...
4. Direct-to-consumer brands are selling both online and offline
You can't close the door to other opportunities even if you have a successful DTC brand. So, more DTC brands are now embracing selling offline.
Glossier is an example. This is a big makeup brand online and is community-centric. You can't buy their products everywhere. But it's reported that they will sell Glossier products at Sephora.
This means Glossier can have massive online sales while also making profits by selling offline. That's the great thing about expanding your business... you have other profit streams.
And another trend is some DTC companies are...
5. Offering product subscriptions
Not only tech companies can utilize the subscription-based model in their business.
Because even direct-to-consumer eCommerce brands are now offering subscription-based products. So, what does this mean?
Subscriptions mean you and your customers can have a long-term affiliation. This depends on the terms of the subscription.
This is an example from Olipop.
They give their customers an option to subscribe to their products. Here's how it works:
When the customers order the products, they can choose when they want them to be delivered.
This is a great way to increase customer retention because if a customer subscribes to your products, they commit to your eCommerce store.
That's why more eCommerce businesses have subscription-based products. Aside from that, they're also...
6. Leaning on social commerce
Social media platforms aren't just for posting pretty pictures anymore. Because you can leverage them and increase your commerce sales.
Because through social commerce, your customers can purchase within the social media platforms you're using.
So, how does this work?
There are different methods because it depends on the interface of the social media channels. But usually, you can create content and utilize the tools.
For example, on TikTok... A business owner can sell within the app via live videos. And the customers can purchase when they click the "Shop" button.
While on Pinterest, users can also shop and browse easily before they will get redirected to the actual online stores.
So, you should be utilizing these platforms to make more sales! And of course, don't forget to...
7. Taking advantage of customer retention
Did you know that customer acquisition is more expensive than customer retention? If you're wondering why... it's because these consumers have already tried your products.
You don't have to go all the way from the start of the funnel to convert them again. Yep, this is one reason why many DTC businesses give way to customer retention.
So, that's another way to grow your DTC brand. One thing you can do to increase brand loyalty is by having customer loyalty programs.
Are you ready to grow?
Grow your direct-to-consumer brand with these trends!
You can implement these ways to grow your DTC brand and stand out in the market. This is your chance to step up your game.
Since the DTC space is evolving, it's essential to step up your DTC strategy so you can gain more sales and attract more customers.
If you want to strengthen your brand in the digital space, here are...