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What is direct-to-consumer retail and what does it have to do with you? Moden technology has made e-commerce more accessible than ever, so it’s unsurprising that greater numbers of brands are choosing to sell directly to customers.

Direct-to-consumer (DTC) sales accounted for 1 in 7 dollars made through e-commerce globally in 2024. It can be a flexible, lower cost way for businesses of every size to get products onto the market. Here’s what you need to know about DTC retail and how to make it work for your brand.

• What is direct-to-consumer retail?
• DTC vs B2C: What’s the difference?
• The benefits of DTC retail
• Is DTC retail right for every business?
• How to nail direct-to-consumer retail
• Using PIM to supercharge your DTC retail strategy

What is direct-to-consumer retail?

Direct-to-consumer retail, often abbreviated to DTC or D2C, is when a brand’s products are sold directly to consumers via the business’s e-commerce platform or physical stores. It’s different to B2B (business to business) sales as the end consumers are individuals rather than corporations buying wholesale goods.

DTC retail can happen in brick-and-mortar locations, like the Nike or Apple store, but the accessibility and lower cost of e-commerce selling means many DTC sales happen online. Any business can sell directly to their consumer, from artisans to household brands. But you’ll need more than just a domain and a dream.

DTC vs B2C: What’s the difference?

The main difference between DTC and B2C retail is the presence of a middleman that facilitates purchases. In a B2C environment, businesses will forge an agreement with a third-party retailer to bring their goods to buyers. This could be a supermarket, department store, online marketplace, or sector-specific retailer, like a furniture or technology marketplace.

For a fee, third-party retailers will list your product or include it in their stores. Some will also handle shipping and fulfilment, while others simply pass on order details for your team to handle. Despite the fees and more administration, the biggest benefit of third-party retail is that your products are exposed to shoppers who may not think to go directly to your site.

The benefits of DTC retail

DTC retail’s biggest benefit is that it gives businesses more control over their e-commerce experience. You can introduce unique product customization features, hold flash sales, or add new products whenever you like. Selling through a third-party retailer means you’re limited by what functionality their site can support. You might also have little control over when sales happen or be tied to a courier that is expensive or impractical.

DTC retail can be more cost effective, as you cut out middleman fees and retain more profits for yourself. You’re able to choose vendors at every stage that deliver the exact service you want and fit with your budget. And if you have a poor experience with a warehouse or delivery company, you’re free to shop around.

Is DTC retail right for every business?

DTC retail can be challenging for new brands that haven’t built a high level of brand awareness yet. You’ll need to deploy strong marketing campaigns and work harder to catch consumers’ attention, even if your products are exceptional. You could end up spending more on advertising and achieve lower sales than you would have by selling through a third-party retailer. B2C retailers expose you to lots of new consumers and give buyers protection, encouraging them to take a chance on your products.

Not all products are great candidates for DTC sale either. Some, like accessories or snack foods, are best sold alongside complementary products to stop them getting lost. Most consumers wouldn’t seek out a store selling just crackers or soda but would purchase a new brand they came across at the grocery store. It’s why even Coca-Cola primarily uses the B2C model – though even this retail behemoth is opening up DTC channels.

How to nail direct-to-consumer retail

It’s possible to smash your sales targets through DTC retail with the right approach. Here are three foundational aspects that can set you up for success:

• Focus on standout marketing – The biggest hurdle with DTC is ensuring consumers find your brand. It’s essential to continually raise your brand profile and reach your audience where they are, whether that’s through irreverent TikTok posts or considered thought leadership content. You should also focus on building a distinct brand identity and encourage consumers to buy into more than just your products.
• Build a strong omnichannel experience – Whether customers find you through a search engine, social media, or banner ads, their experience should feel consistent. Omnichannel ensures every channel is connected and allows shoppers to resume browsing on any of them.
• Implement the right tech – If every part of sales and marketing is being handled by your team, it’s vital that you’re supported by the right software. Relying on chaotic spreadsheets for product information and manually updating data across all direct channels is an inefficient use of your time. With project information management (PIM) software, you can establish a central source of product truth and automate error-prone, time-consuming tasks.

Using PIM to supercharge your DTC retail strategy

However you split your efforts between DTC and third-party retail, the key to success is having a good handle on your product data. The flexible inriver PIM helps you do exactly that. Our agile, fully elastic data model can grow with you, with API-based data syndication and digital shelf analytics capabilities. Powered by AI, it can also help to automate processes like product attribute updates and descriptor writing, freeing up your team to focus on more meaningful tasks.

Unlock the full potential of your DTC strategy with inriver’s flexible, AI-powered PIM solution. Simplify product data management, improve efficiency, and create seamless shopping experiences for your customers. Take control of your e-commerce success – schedule a personalized demo today and see how inriver can transform your business.