{"id":4883,"date":"2016-11-12T15:08:14","date_gmt":"2016-11-12T23:08:14","guid":{"rendered":"https:\/\/thegood.com\/?post_type=insights&#038;p=4883"},"modified":"2021-04-28T08:54:06","modified_gmt":"2021-04-28T15:54:06","slug":"benefits-direct-to-consumer","status":"publish","type":"insights","link":"https:\/\/thegood.com\/insights\/benefits-direct-to-consumer\/","title":{"rendered":"16 Big Manufacturer Benefits of Selling Direct-to-Consumer"},"content":{"rendered":"\n<p>Over the next four years, Nike <a href=\"http:\/\/s1.q4cdn.com\/806093406\/files\/doc_events\/NIKE-Inc-FY16-Investor-Day-Summary-Press-Release-FINAL.pdf\" target=\"_blank\" rel=\"noopener\">plans to grow<\/a> direct-to-consumer (DTC) sales by a factor of seven \u2013 from the current billion-dollar level to over $7 billion.<\/p>\n\n\n\n<p>That goal gives rise to two pertinent questions:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Isn\u2019t it bad business for brands to compete against their retailers?<\/li><li>Why would consumers prefer to buy direct, even if they have to pay more for the privilege?<\/li><\/ul>\n\n\n\n<p>The days when manufacturers focused on manufacturing and left the selling to sellers are quickly disappearing.<\/p>\n\n\n\n<p>Let\u2019s look at what\u2019s fueling direct to consumer sales and why consumers, manufacturers, and retailers all stand to gain from the trend.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-traditional-wisdom-got-tossed-out-the-digital-window\">Why Traditional Wisdom Got Tossed out the Digital Window<\/h2>\n\n\n\n<p>Prior to the expanded access to markets provided by the internet, few manufacturers or wholesalers sold directly to the consumer. The road from factory to home or office generally followed a strictly defined and protected route.<\/p>\n\n\n\n<p>Consumers who tried to purchase direct were gently, but firmly, pointed towards the appropriate outlet: manufacturers sold only to wholesalers and wholesalers sold only to retailers.<\/p>\n\n\n\n<p>Online shopping provided a way for consumers to go to the store without leaving home. Email gave brands a cheap and easy way to communicate with those interested in their products. Advances in distribution allowed quick, doorstep deliveries.<\/p>\n\n\n\n<p>And now, as new companies are formed, it is more common to sell direct-to-consumer from the start. Platforms like Kickstarter help generate DTC awareness prior to even manufacturing a product, and SaaS ecommerce platforms like Shopify make it easier than ever to start selling online without the need to find a retailer to stock the brand\u2019s new product on their shelves.<\/p>\n\n\n\n<p>Direct-to-consumer selling was the logical outcome: not only is an intermediary no longer necessary (in many cases), but messages are most clearly communicated face-to-face, without the potential skewing imposed by the old system.<\/p>\n\n\n\n<p>Resource: <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a rel=\"noopener\" href=\"https:\/\/thegood.com\/insights\/ecommerce-brands\/\" target=\"_blank\">7 Simple Ways Ecommerce Brands Can Frustrate Retailers<\/a><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-ecommerce-is-reshaping-the-concept-of-branding\">Ecommerce is Reshaping the Concept of Branding<\/h2>\n\n\n\n<p>Ecommerce forced brands to shift their focus from designing a more appealing logo or a more memorable television commercial to the in-your-face world of social media buzz and consumer reviews.<\/p>\n\n\n\n<p>Consumers have always held the real power (if they don\u2019t buy it, you can\u2019t sell it), but the Information Age amplified that power and made it stronger. Like never before, shoppers look for the proof in the pudding. Wild claims are uncovered quickly and disappointment is broadcast widely.<\/p>\n\n\n\n<p>Price comparisons are easy to find. Many retailers rallied against \u201cshowrooming,\u201d and tried to prevent consumers from using smartphones to price-check while in the store. Others launched low price guarantees. Many tried to browbeat customers into buying locally.<\/p>\n\n\n\n<p>And while some say the best way to compete is to cut margins and join the race to the bottom of the pricing barrel, something else is strikingly apparent from the direct-to-consumer movement: consumers still want (and are willing to pay for) security, quality, and service.<\/p>\n\n\n<span class='bctt-click-to-tweet'><span class='bctt-ctt-text'><a href='https:\/\/twitter.com\/intent\/tweet?url=https%3A%2F%2Fthegood.com%2Finsights%2Fbenefits-direct-to-consumer%2F&#038;text=Here%20are%203%20things%20consumers%20want%20and%20will%20pay%20for.&#038;via=thegood&#038;related=thegood' target='_blank'rel=\"noopener noreferrer\">Here are 3 things consumers want and will pay for. <\/a><\/span><a href='https:\/\/twitter.com\/intent\/tweet?url=https%3A%2F%2Fthegood.com%2Finsights%2Fbenefits-direct-to-consumer%2F&#038;text=Here%20are%203%20things%20consumers%20want%20and%20will%20pay%20for.&#038;via=thegood&#038;related=thegood' target='_blank' class='bctt-ctt-btn'rel=\"noopener noreferrer\">Share on X<\/a><\/span>\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-consumers-want-to-buy-direct\">Why Consumers Want to Buy Direct<\/h2>\n\n\n\n<p>There was a time when consumers seeking to buy directly from the manufacturer or wholesaler were looking primarily for a price break. Big-box stores capitalized on that desire, designing retail stores to look like warehouses and leveraging bulk discounts to drive sales.<\/p>\n\n\n\n<p>There\u2019s more to the picture, though. Today\u2019s shoppers are accustomed to enhanced access. For instance, they can chat directly with a brand\u2019s support team on the brand ecommerce website prior to making a purchase, ensuring they receive the most knowledgeable answers to their pre-purchase research questions..<\/p>\n\n\n\n<p>But shoppers are also well aware of online scams. They\u2019ve either been caught by, or heard stories of, faked goods. They look like the real thing. They are branded like the real thing, but they aren\u2019t.<\/p>\n\n\n\n<p>For example, Apple says these products not only infringe on their brand, but can be dangerous. Following independent research, they filed suit this year against one of the Amazon third-party vendors (see screenshot below).<\/p>\n\n\n\n<div class=\"wp-block-image wp-image-4886 size-large\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"1024\" height=\"93\" src=\"https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-apple-amazon-1024x93.jpg\" alt=\"direct-to-consumer-apple-amazon\" class=\"wp-image-4886\" srcset=\"https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-apple-amazon-1024x93.jpg 1024w, https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-apple-amazon-300x27.jpg 300w, https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-apple-amazon-768x70.jpg 768w, https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-apple-amazon-610x55.jpg 610w, https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-apple-amazon-100x9.jpg 100w, https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-apple-amazon-934x85.jpg 934w, https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-apple-amazon.jpg 1190w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>Source: http:\/\/www.macrumors.com\/2016\/10\/19\/apple-lawsuit-counterfeit-chargers-cables\/<\/figcaption><\/figure><\/div>\n\n\n\n<p>At The Good, we\u2019re constantly listening to the audiences our clients serve. Those observations inform our conversion optimization experiments and help us understand the needs of consumers.<\/p>\n\n\n\n<p>Resource: <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a rel=\"noopener\" href=\"https:\/\/thegood.com\/insights\/online-success-through-testing-and-optimization\/\" target=\"_blank\">Optimization: Test, Grow, &amp; Repeat<\/a><\/li><\/ul>\n\n\n\n<p>Here are some of the primary factors we\u2019ve found to explain why many consumers prefer buying directly from the manufacturer \u2013 even if the item is more expensive there!<\/p>\n\n\n\n<div class=\"wp-block-stackable-columns stk-block-columns stk-block stk-c842da9 reusable-block-2-column good-question-block\" data-block-id=\"c842da9\"><style>.stk-c842da9{max-width:1500px !important;margin-top:30px !important;margin-bottom:30px !important}.stk-c842da9-column{max-width:941px !important}@media screen and (max-width:767px){.stk-c842da9{--stk-col-order-1:2 !important;--stk-col-order-2:1 !important}}<\/style><div class=\"stk-row stk-inner-blocks stk-block-content stk-content-align stk-c842da9-column\">\n<div class=\"wp-block-stackable-column stk-block-column stk-column stk-block stk-8993c44 horizontal-form-container\" data-v=\"4\" data-block-id=\"8993c44\"><style>.stk-8993c44-container{margin-top:0px !important;margin-right:0px !important;margin-bottom:0px !important;margin-left:0px !important;background-color:#c3ddf0 !important;border-top-left-radius:12px !important;border-top-right-radius:12px !important;border-bottom-right-radius:12px !important;border-bottom-left-radius:12px !important;overflow:hidden !important;max-width:701px !important;padding-top:40px !important;padding-right:35px !important;padding-bottom:40px !important;padding-left:35px !important}.stk-8993c44{margin-top:0px !important}.stk-8993c44-container:before{background-color:#c3ddf0 !important}@media screen and (max-width:1023px){.stk-8993c44-container{padding-bottom:60px !important}}@media screen and (max-width:767px){.stk-8993c44-container{padding-bottom:60px !important}}<\/style><style class=\"stk-custom-css\">.stk-8993c44 figure{margin:0 !important}<\/style><div class=\"stk-column-wrapper stk-block-column__content stk-container stk-8993c44-container stk-hover-parent\"><div class=\"stk-block-content stk-inner-blocks stk-8993c44-inner-blocks\">\n<div class=\"wp-block-stackable-heading stk-block-heading stk-block-heading--v2 stk-block stk-791f1b3\" id=\"span-style-color-0277-c-0-class-stk-highlight-enjoying-this-article-span\" data-block-id=\"791f1b3\"><style>.stk-791f1b3{margin-bottom:12px !important}.stk-791f1b3 .stk-block-heading__text{font-size:36px !important;color:#ffffff !important}@media screen and (max-width:1023px){.stk-791f1b3 .stk-block-heading__text{font-size:36px !important}}@media screen and (max-width:767px){.stk-791f1b3 .stk-block-heading__text{font-size:24px !important}}<\/style><h3 class=\"stk-block-heading__text has-text-color has-text-align-center\"><span style=\"color: #0277c0;\" class=\"stk-highlight\">Enjoying this article?<\/span><\/h3><\/div>\n\n\n\n<div class=\"wp-block-stackable-text stk-block-text stk-block stk-30f99ae\" data-block-id=\"30f99ae\"><style>.stk-30f99ae{margin-bottom:20px !important}.stk-30f99ae .stk-block-text__text{color:#ffffff !important}<\/style><p class=\"stk-block-text__text has-text-color has-text-align-center\"><span style=\"color: #000000;\" class=\"stk-highlight\">Subscribe to our newsletter, Good Question, to get insights like this sent straight to your inbox every week.<\/span><\/p><\/div>\n\n\n\n\t\t\t\t\t\t<script>\n\t\t\t\t\t\t\twindow.hsFormsOnReady = window.hsFormsOnReady || [];\n\t\t\t\t\t\t\twindow.hsFormsOnReady.push(()=>{\n\t\t\t\t\t\t\t\thbspt.forms.create({\n\t\t\t\t\t\t\t\t\tportalId: 5834619,\n\t\t\t\t\t\t\t\t\tformId: \"64ede74e-e88f-44c7-996f-78859799755a\",\n\t\t\t\t\t\t\t\t\ttarget: \"#hbspt-form-1768312853000-0255664455\",\n\t\t\t\t\t\t\t\t\tregion: \"na2\",\n\t\t\t\t\t\t\t\t\tcssRequired: \".submitted-message { overflow: auto; } .hs-form-88422a7d-0355-4f27-b674-4b9fcc71560c, .hs-form-ac90f61a-a614-4bcd-b57a-18cd0e91ceff { color: #fff }\",\n\t\t\t\t\t\t\t})});\n\t\t\t\t\t\t<\/script>\n\t\t\t\t\t\t<div class=\"hbspt-form\" id=\"hbspt-form-1768312853000-0255664455\"><\/div>\n<\/div><\/div><\/div>\n<\/div><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-shoppers-love-it-when-brands-interact-directly-with-them\"><strong>1. Shoppers love it when brands interact directly with them.<\/strong><\/h3>\n\n\n\n<p>It\u2019s like the difference between reading a book and meeting the author. Once there\u2019s a personal connection, you\u2019re not only much more likely to buy more product, but to encourage others to do likewise. The more accessible you are to your customers, the more likely they are to become not just buyers\u2026 but fans and brand evangelists through <a href=\"https:\/\/thegood.com\/insights\/online-review-management\/\">online reviews<\/a> or similar.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-buying-direct-relieves-the-anxiety-about-being-swindled-by-a-knock-off-distributor\"><strong>2. Buying direct relieves the anxiety about being swindled by a knock-off distributor.<\/strong><\/h3>\n\n\n\n<p>Birkenstock decided to stop selling on Amazon, citing the inability to police companies selling price-cutting counterfeits and diluting the Birkenstock brand with their inferior goods. A CNBC report said, \u201cBirkenstock will be telling consumers to purchase only from authorized retailers, and that any products listed on Amazon can&#8217;t be trusted.\u201d<\/p>\n\n\n\n<p>The publicity surrounding the move sent many would-be online buyers to the Birkenstock USA website, where they could be sure their money would go to the purchase of authentic Birkenstock sandals.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-brands-carry-every-product-retailers-typically-don-t\"><strong>3. Brands carry every product; retailers typically don\u2019t.<\/strong><\/h3>\n\n\n\n<p>This is especially important to customers already impressed with the brand. They already love one of your products, now they\u2019d love to find out what else you offer.<\/p>\n\n\n\n<p>The retailer may carry your fishing poles, but the customer wants to get the tee shirt and ball cap too. Where better to get a look at the entire line than via the brand website?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-brands-carry-every-color-size-and-style\"><strong>4. Brands carry every color, size, and style.<\/strong><\/h3>\n\n\n\n<p>Retailers stock the most popular sizes and colors. By purchasing directly from the brand, you can shop the entire selection. This factor is especially important to those who don\u2019t fit the standard mold.<\/p>\n\n\n\n<p>And here, again, these customers can quickly become brand advocates \u2013 especially to those who share their size or style preferences.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-5-direct-to-consumer-shoppers-get-direct-access-to-the-most-accurate-information-and-support\"><strong>5. Direct-to-consumer shoppers get direct access to the most accurate information and support.<\/strong><\/h3>\n\n\n\n<p>Shopping on the manufacturer\u2019s website or brand location gives you access to people who work only with that brand and know it inside out. Shopping on a retailer\u2019s website gives you access to people who may know very little about a whole lot. Information gleaned directly from the company site or company customer service is more likely to be accurate and complete.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-6-brands-are-more-likely-to-stock-what-you-need\"><strong>6. Brands are more likely to stock what you need.<\/strong><\/h3>\n\n\n\n<p>Spending time searching for just the right product can turn frustrating when you get to checkout and discover the item isn\u2019t in stock \u2013 or worse yet, you place the order and then get notified of a shipping delay. Your chances of getting what you need when you want it are normally better when you go to the source.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-7-replacement-parts-are-easier-to-find-on-the-brand-site\"><strong>7. Replacement parts are easier to find on the brand site.<\/strong><\/h3>\n\n\n\n<p>When the retailer stops selling the particular model you bought, it may be difficult to find replacement parts. The manufacturer will typically stock parts longer than any other outlet. They may also be able to sell them without an exorbitant markup.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-8-pertinent-accessories-are-easier-to-search-and-find\"><strong>8. Pertinent accessories are easier to search and find.<\/strong><\/h3>\n\n\n\n<p>You\u2019re buying a new camera that\u2019s worth every penny you paid. Do you want to settle for a generic case to protect it? By shopping with the manufacturer, you can probably find a case made especially for your camera. Not only that, but the logo on the case will add value to the purchase. You\u2019ll feel more a part of the brand family.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-9-direct-to-consumer-returns-and-service-issues-are-often-better-handled\"><strong>9. Direct to Consumer returns and service issues are often better handled.<\/strong><\/h3>\n\n\n\n<p>When you complain to a retailer about a purchase, they may return your money and take the product back. When you buy from the brand, though, there\u2019s more incentive to not just settle the financial claim, but to keep you coming back to them for more.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-10-bundle-consumer-sentiment-together-and-the-general-consensus-is-that-the-brand-is-more-likely-to-do-the-right-thing\"><strong>10. Bundle consumer sentiment together, and the general consensus is that the brand is more likely to \u201cdo the right thing.\u201d<\/strong><\/h3>\n\n\n\n<p>If I sell you a product made by someone else, I can always pass the buck on to the manufacturer when there\u2019s a problem. If I sell you a product manufactured or sourced in-house, however, the buck stops here. Consumers feel more comfortable dealing directly with brands because there\u2019s no wiggle room.<\/p>\n\n\n\n<p>Consumers have plenty of reasons to prefer purchasing direct, but brands did not \u2013 until ecommerce changed the rules of the game.<\/p>\n\n\n<span class='bctt-click-to-tweet'><span class='bctt-ctt-text'><a href='https:\/\/twitter.com\/intent\/tweet?url=https%3A%2F%2Fthegood.com%2Finsights%2Fbenefits-direct-to-consumer%2F&#038;text=Direct-to-consumer%20sales%20provide%20a%20classic%20win-win%20situation.&#038;via=thegood&#038;related=thegood' target='_blank'rel=\"noopener noreferrer\">Direct-to-consumer sales provide a classic win-win situation. <\/a><\/span><a href='https:\/\/twitter.com\/intent\/tweet?url=https%3A%2F%2Fthegood.com%2Finsights%2Fbenefits-direct-to-consumer%2F&#038;text=Direct-to-consumer%20sales%20provide%20a%20classic%20win-win%20situation.&#038;via=thegood&#038;related=thegood' target='_blank' class='bctt-ctt-btn'rel=\"noopener noreferrer\">Share on X<\/a><\/span>\n\n\n<h2 class=\"wp-block-heading\" id=\"h-benefits-to-brands-when-consumers-buy-direct\">Benefits to Brands When Consumers Buy Direct<\/h2>\n\n\n\n<p>Computers, shoes, shaving gear, even cars can now be purchased online from the manufacturer. Many brands combine virtual stores with branded retail outlets and are learning to make both presences work together to deliver the optimum customer experience.<\/p>\n\n\n\n<p>Examples are numerous:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Amazon launched brick and mortar bookstores<\/li><li>Tesla Motors bypasses traditional car lots<\/li><li>Nike is playing the direct-to-consumer card in a big way<\/li><li>HP allows you to select and customize your computer via their online store<\/li><\/ul>\n\n\n\n<p>How can the traditional manufacturer &gt; wholesaler &gt; retailer &gt; consumer flow be so blatantly violated without incurring retail sales loss backlashes, though?<\/p>\n\n\n\n<div class=\"wp-block-image wp-image-4885 size-large\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"1024\" height=\"219\" src=\"https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-tesla-1024x219.jpg\" alt=\"direct-to-consumer-tesla\" class=\"wp-image-4885\" srcset=\"https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-tesla-1024x219.jpg 1024w, https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-tesla-300x64.jpg 300w, https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-tesla-768x164.jpg 768w, https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-tesla-1536x329.jpg 1536w, https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-tesla-610x131.jpg 610w, https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-tesla-100x21.jpg 100w, https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-tesla-934x200.jpg 934w, https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-tesla.jpg 1799w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption>Source:&nbsp;https:\/\/www.tesla.com\/<\/figcaption><\/figure><\/div>\n\n\n\n<p>Resource: <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a rel=\"noopener\" href=\"https:\/\/thegood.com\/insights\/creating-personalized-customer-experience\/\" target=\"_blank\">Creating a Personalized Customer Experience<\/a><\/li><\/ul>\n\n\n\n<p>We\u2019ve already listed consumer benefits from direct-to-consumer. Now let\u2019s consider benefits to brands. Here are our top five findings:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-it-allows-brands-to-retain-control-of-image\"><strong>1. It allows brands to retain control of image.<\/strong><\/h3>\n\n\n\n<p>By selling products from their own websites and retail outlets, brands don\u2019t risk image dilution from third parties who don\u2019t have as much reason to champion their goods.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-it-gives-brands-maximum-relationship-building-potential\"><strong>2. It gives brands maximum relationship-building potential.<\/strong><\/h3>\n\n\n\n<p>When you sell direct, you have direct access to the consumer. Macy\u2019s knows the value of making the \u201cmagic\u201d happen in every transaction \u2013 but it\u2019s Macy\u2019s magic, not brand magic.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-it-makes-customers-happy\"><strong>3. It makes customers happy.<\/strong><\/h3>\n\n\n\n<p>For years, consumers asked for the ability to buy direct. When you give them that option, you\u2019re giving them what they want.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-it-means-brands-don-t-have-all-their-eggs-in-one-basket\"><strong>4. It means brands don\u2019t have all their eggs in one basket.<\/strong><\/h3>\n\n\n\n<p>By expanding sales to company sites, the base broadens. You no longer have to rely on retailers to finalize transactions. You can make your own sales.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-5-it-opens-up-a-mailing-list-goldmine\"><strong>5. It opens up a mailing list goldmine.<\/strong><\/h3>\n\n\n\n<p>When customers buy from retailers, you get access to their information only if there\u2019s a warranty registration involved. When customers buy direct, you know who they are, where they live, and how to contact them. Never before has there been more opportunity for brands to build ongoing relationships with consumers.<\/p>\n\n\n\n<p>Consumers want it, brands benefit by it, but how about retailers? Are they getting the short end of the stick?<\/p>\n\n\n\n<p>Turns out, direct-to-consumer can be good business for them too.<\/p>\n\n\n<span class='bctt-click-to-tweet'><span class='bctt-ctt-text'><a href='https:\/\/twitter.com\/intent\/tweet?url=https%3A%2F%2Fthegood.com%2Finsights%2Fbenefits-direct-to-consumer%2F&#038;text=16%20Powerful%20Benefits%20of%20Selling%20Direct-to-Consumer%20Online&#038;via=thegood&#038;related=thegood' target='_blank'rel=\"noopener noreferrer\">16 Powerful Benefits of Selling Direct-to-Consumer Online <\/a><\/span><a href='https:\/\/twitter.com\/intent\/tweet?url=https%3A%2F%2Fthegood.com%2Finsights%2Fbenefits-direct-to-consumer%2F&#038;text=16%20Powerful%20Benefits%20of%20Selling%20Direct-to-Consumer%20Online&#038;via=thegood&#038;related=thegood' target='_blank' class='bctt-ctt-btn'rel=\"noopener noreferrer\">Share on X<\/a><\/span>\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-direct-to-consumer-boom-effect-on-retail\">The Direct to Consumer Boom Effect on Retail<\/h2>\n\n\n\n<p>The direct-to-consumer boom doesn\u2019t spell the end of non-manufacturer retail stores. There\u2019s plenty of room and plenty of demand left over.<\/p>\n\n\n\n<p>For one thing, consumers appreciate the ability to compare different brands side-by-side. Best Buy, for instance, gives consumers a place to see HP and Dell in the same store. That\u2019s not the case at brand-only outlets. You get the company pitch only.<\/p>\n\n\n\n<p>But there\u2019s another way retailers gain when brands open up direct-to-consumer access: DTC makes brands more savvy about the market. It provides a window to the consumer that\u2019s bigger and clearer than ever before. When that information is shared with retailers, sales increase for both parties.<\/p>\n\n\n\n<p>Brands and retailers are <a href=\"https:\/\/thegood.com\/insights\/driving-e-commerce-without-upsetting-retail-partners\/\" target=\"_blank\" rel=\"noreferrer noopener\">partners<\/a>, not competitors. When they work together, everyone wins. Direct-to-consumer selling isn\u2019t the <a href=\"https:\/\/thegood.com\/insights\/overcoming-channel-conflict\/\" target=\"_blank\" rel=\"noreferrer noopener\">brand versus retailer<\/a> conundrum we once feared. Instead, it\u2019s a symbiotic means of bringing both closer together.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-if-you-re-an-ecommerce-leader-looking-to-improve-direct-to-consumer-sales-we-can-help\">If you&#8217;re an ecommerce leader looking to improve direct-to-consumer sales, we can help<\/h3>\n\n\n\n<div class=\"wp-block-ugb-container ugb-container ugb-98623be ugb-container--v2 ugb-container--design-image2 ugb-container--collapse-on-mobile ugb-main-block\"><style>.ugb-98623be-wrapper.ugb-container__wrapper{border-radius:0px !important;background-color:#000000 !important}.ugb-98623be-wrapper.ugb-container__wrapper:before{background-color:#000000 !important}.ugb-98623be-content-wrapper > h1,.ugb-98623be-content-wrapper > h2,.ugb-98623be-content-wrapper > h3,.ugb-98623be-content-wrapper > h4,.ugb-98623be-content-wrapper > h5,.ugb-98623be-content-wrapper > h6{color:#ffffff}.ugb-98623be-content-wrapper > p,.ugb-98623be-content-wrapper > ol li,.ugb-98623be-content-wrapper > ul li{color:#ffffff}.ugb-98623be-wrapper > .ugb-container__image{background-image:url(https:\/\/thegood.com\/wp-content\/uploads\/9.jpg);width:40% !important}@media screen and (max-width:768px){.ugb-98623be-wrapper > .ugb-container__image{height:300px !important}}.ugb-98623be > .ugb-inner-block > .ugb-block-content > *{justify-content:center !important}@media screen and (min-width:768px){.ugb-98623be > .ugb-inner-block > .ugb-block-content > .ugb-container__wrapper > .ugb-container__side{padding-top:8% !important;padding-bottom:8% !important;padding-right:8% !important;padding-left:8% !important}}<\/style><div class=\"ugb-inner-block\"><div class=\"ugb-block-content\"><div class=\"ugb-container__wrapper ugb-98623be-wrapper ugb--shadow-0\"><div class=\"ugb-container__image\"><\/div><div class=\"ugb-container__side\"><div class=\"ugb-container__content-wrapper ugb-98623be-content-wrapper\">\n<h3 class=\"wp-block-heading\" id=\"h-looking-for-a-cro-action-plan\"><span style=\"color: #ffffff;\" class=\"ugb-highlight\">Interested in learning the laws of optimization?<\/span><\/h3>\n\n\n\n<p><span style=\"color: #ffffff;\" class=\"stk-highlight\"><em>Opting In To Optimization<\/em> is a set of principles that will help digital leaders capitalize on unprecedented market demand and build sustainable, thriving businesses.<\/span><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-white-color has-main-blue-background-color has-text-color has-background wp-element-button\" href=\"https:\/\/thegood.com\/oito\/\" target=\"_blank\" rel=\"noreferrer noopener\">LEARN MORE<\/a><\/div>\n<\/div>\n<\/div><\/div><\/div><\/div><\/div><\/div>\n\n\n\n<p><\/p>\n<div class=\"tkugp-items-wrap\"><div class=\"tkugp-bottomcontent\"><\/div><\/div>","protected":false},"author":3,"featured_media":88479,"comment_status":"closed","ping_status":"closed","template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","wpcf-summary":["Consumers, manufacturers, and retailers all stand to gain from the direct-to-consumer sales\u00a0trend.\u00a0These are the benefits."]},"insight-category":[32],"insight-tag":[7006,10085],"class_list":["post-4883","insights","type-insights","status-publish","format-standard","has-post-thumbnail","hentry","insight-category-customer-acquisition","insight-tag-ecommerce","insight-tag-sales"],"acf":[],"featured_image_urls_v2":{"full":["https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer.jpeg",934,623,false],"thumbnail":["https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-150x150.jpeg",150,150,true],"medium":["https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-300x200.jpeg",300,200,true],"medium_large":["https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-768x512.jpeg",768,512,true],"large":["https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer.jpeg",934,623,false],"1536x1536":["https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer.jpeg",934,623,false],"2048x2048":["https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer.jpeg",934,623,false],"teaser":["https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-380x215.jpeg",380,215,true],"teaser-large":["https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-760x430.jpeg",760,430,true],"insights-featured":["https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-600x400.jpeg",600,400,true],"case-study-logo-small":["https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer.jpeg",112,75,false],"gform-image-choice-sm":["https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer.jpeg",300,200,false],"gform-image-choice-md":["https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer.jpeg",400,267,false],"gform-image-choice-lg":["https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer.jpeg",600,400,false],"profile_24":["https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-24x24.jpeg",24,24,true],"profile_48":["https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-48x48.jpeg",48,48,true],"profile_96":["https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-96x96.jpeg",96,96,true],"profile_150":["https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-150x150.jpeg",150,150,true],"profile_300":["https:\/\/thegood.com\/wp-content\/uploads\/direct-to-consumer-300x300.jpeg",300,300,true]},"post_excerpt_stackable_v2":"<p>Over the next four years, Nike plans to grow direct-to-consumer (DTC) sales by a factor of seven \u2013 from the current billion-dollar level to over $7 billion. That goal gives rise to two pertinent questions: Isn\u2019t it bad business for brands to compete against their retailers?Why would consumers prefer to buy direct, even if they have to pay more for the privilege? The days when manufacturers focused on manufacturing and left the selling to sellers are quickly disappearing. Let\u2019s look at what\u2019s fueling direct to consumer sales and why consumers, manufacturers, and retailers all stand to gain from the trend.&hellip;<\/p>\n","category_list_v2":"","author_info_v2":{"name":"Jon MacDonald","url":"https:\/\/thegood.com\/author\/jonmacdonald\/"},"comments_num_v2":"0 comments","yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.7 (Yoast SEO v26.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>16 Big Manufacturer Benefits of Selling Direct-to-Consumer<\/title>\n<meta name=\"description\" content=\"Consumers, manufacturers, and retailers all stand to gain huge benefits from the direct-to-consumer sales\u00a0trend.\u00a0Here are the benefits.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/thegood.com\/insights\/benefits-direct-to-consumer\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" 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