6 Reasons Why Ecommerce Brands Should Also Go Direct Selling To Customers
Six Direct Sales Advantages for E-Commerce Brands
Traditionally, brand manufacturers use distributors, big retailers and e-commerce marketplaces to sell their goods. In order to have a more direct relationship with consumers, brands previously needed to open bricks and mortar locations, with their associated overhead. The internet has leveled the playing field in this sense, offering direct-to-consumer (DTC) channels to companies of any size.
Brands with DTC channels take advantage of online stores to expand their reach. Direct sales tips abound for businesses of any size. Here’s why you should consider expanding your reach into DTC channels, as well as your traditional marketplaces.
1) Reap the Rewards
You put a lot of effort into promoting your brand and products. While large-scale e-commerce marketplaces offer lots of traffic, their audience comes at a cost. Opening an online DTC store removes the middleman, and all associated commissions and fees. You can continue to leverage a third-party marketplace’s audience by providing links to your site, where more product and brand information is available. The higher your search rankings on the internet, the more it makes sense to open a DTC channel on your site. At the same time, your direct sales will boost your site’s search ranking.
2) Keep the Focus Where You Want It
One of the harsh realities of large e-commerce marketplaces is that your product is one of many. As such, your product is unlikely to get any special attention. Typically, third-party retailers will only promote the products that are selling well, as these are the products that matter most to them. This makes it more difficult to break through in a huge e-commerce marketplace. One of direct sales’ advantages is the ability to highlight your products in a way that makes sense for your business.
3) Enhance the Shopping Experience
Direct selling provides the business opportunity to craft your brand message carefully and enhance customer experience. Large third-party sellers are focused on bulk sales and profits, not on your relationship with your customer. Creating DTC channels give you back that control which can only strengthen your reputation.
4) Minimize Your Dependance on a Single Revenue Stream
The old adage about having all your eggs in one basket applies here. No matter how successful any revenue stream has been for you up until now, unforeseen events can change your revenue suddenly and drastically. The best way to hedge against profit loss is to create multiple revenue streams, and DTC channels are inexpensive to set up.
5) Make Your Store a Viable Option
DTC channels will reach new customers and will keep them from eyeing competitors’ products as they might otherwise do in a large marketplace. One of the most valuable direct sales tips is to do your research and provide competitive pricing and shipping rates in your own store.
6) Communicate with Customers More Effectively
Direct communication with your customers allows you to educate and inform them about your products in a more in-depth manner. Third-party retailers are less interested in this aspect of your business. They also have less at stake when it comes to the customer service associated with your brand. DTC channels allow you to control the customer experience.
DTC channels provide an excellent complement to listings in third-party marketplaces. They diversify your revenue streams and give you the opportunity to control your brand messaging and customer relationships.