Direct to Consumer: Should Your Brand Make the Move?
Etail’s CEO and co-founder, Michael Anderson, was recently interviewed by eSellerCafe as part of their ongoing Ecommerce Influencer Series. A wide range of topics were discussed including whether or not all brands and manufacturers should start selling direct to consumer.
- The biggest changes in ecommerce over the past three years
- What sellers can do to bring the biggest rewards in the quickest fashion
- Whether or not Amazon is a friend or foe to small businesses
- What emerging technology Michael sees as the biggest game changer in ecommerce
- How Etail Solutions approaches the current multi-channel ecommerce landscape
- How Michael got his start in the ecommerce industry
When Michael was asked about the biggest changes in ecommerce over the past three years, his response was quick and decisive.
“The number of brands and manufacturers shifting away from wholesale and toward direct-to-consumer (D2C). The driving forces behind this move are what you would expect, profitability and growth. D2C also allows brands and manufacturers to know which customers are buying which products and how often. Having this type of visibility isn’t possible when selling wholesale.
Not only that, consumers are starting to prefer buying direct instead of through retailers. Millennials are causing this shift, viewing the product data of brands and manufacturers as being more credible and appealing. They’re diligent in their research and more demanding when it comes to customer experience and price.
Does this mean every brand and manufacturer should make the move to D2C? Not necessarily.
To do it right, there’s a certain level of operational excellence required. Transaction life cycles are much shorter than brands and manufacturers are used to. Managing high volumes of single line orders is something they’ve never done before.
If they’re not operating efficiently, they’ll have trouble meeting customer expectations and marketplace requirements.”
Click here to read the interview in its entirety.