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The Advantages of Investing in a DTC Website



So far in this series, we have discussed why many brands are going direct to consumer and what you need to know about it. Today we will be talking about the advantages of investing in a DTC website. Are you still on the fence about why you should invest in a DTC eCommerce website? Here are several advantaged to persuade you.


Add a New Revenue Stream


Manufacturers are increasingly facing stiff competition for limited shelf space as retailers scale back physical locations — which has been compounded by the ongoing pandemic. With more products piling up in warehouses, manufacturers need a solution to get them out the door.


As brick-and-mortar retailers temporarily or permanently close, consumers are going online to buy products they would typically purchase in store. A trend that will continue even after the pandemic ends. However, manufacturers are in a unique position where they have to help meet these consumer demands while making up lost sales due to shrinking retailer space.


Even if your business is not facing these challenges, you still have the opportunity to reach potential customers that are looking for your product online. For example, a Retail TouchPoints survey found that 33% of shoppers consider a brand manufacturer’s website as the most influential resource when researching a potential purchase.


Capture Customer’s Behavior Data


Access to first-party data on customer behaviors isn’t something that manufacturers typically have. In most instances, feedback is filtered through dealers and retailers, and maybe social media channels if you have an active presence. Even then, the majority of information is related to transactions. However, you can collect a wide range of first-party data on their behaviors when you sell directly to consumers.


Combined with the transactional data from retailers, as well as your own website, you’ll now have a better understanding of your customers. By leveraging this data, you can make strategic business decisions on everything from product development to packaging and pricing.


For instance, you might want to test a new luxury brand or launch a product in a new market. By first testing these initiatives through a DTC eCommerce channel, you can utilize the first-party data you collect to determine how to roll out these offerings to your retail partners.


Build Customer Loyalty and Trust


Selling DTC gives you control over the entire customer journey, from the moment someone lands on your website until the product is delivered — and beyond. Using the data you collect, you can create customer-centric experiences on your website, such as recommending products based on recently viewed items. You can also send emails to gather feedback on how they like the product or send tips for how to use the items they purchased.


If your target market is millennials, a generation that represents 30% of total retail sales in the U.S., these types of customer-centric experiences are even more important. Research shows that their loyalty is directly related to their feelings on how brands treat them. Plus, you’re building trust with customers who want to be assured they’re making a purchase from an official source — which is especially important if you’re planning to sell on third-party marketplaces like Amazon.


These are just three of the advantages of having a direct to consumer eCommerce website. Now is the time to jump on board with DTC if you want to connect directly with your consumers and have another selling channel. Contact our experts at ShopIt Ventures and learn how we can help take your business to DTC with a new eCommerce website.

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