With the changing events occurring worldwide because of the pandemic, one sector that has seen the most impact is retail. Markets started going empty and foot traffic decreased immensely. All of this resulted in people turning towards e-commerce platforms to fulfill their shopping needs.
However, limited delivery spots on many platforms caused brands to shift towards Direct-to-consumer business model which gives businesses full control over their operations. The shift towards D2C model coupled with automated logistics system, lets business operate seamlessly by offering following benefits:
Speed and Convenience
D2C models offer brands a chance to forgo the complexities that used to arise with wholesale and distribution channels. These complexities include delayed product launch in the market, leading to fewer chances of gaining a wide consumer base. With D2C models, brands can now quickly cater to the needs of their consumers, leading to good rapport building with a wider consumer base.
Positive Customer Experience
Customers experience is increasingly becoming a huge factor in deciding brand reputation. On the contrary, companies that focus more on selling their product fail to deliver value. D2C model helps businesses in creating a better customer experience through quick and smooth operations.
When brands use outside distribution channels, it impacts inventory management and logistic operations. Inventory piles up, leading to inefficiency in order handling. Moreover, brands fail to acquire personal data of their customers. With D2C model, business can eliminate intermediary involvement and free themselves from the issues arising because of traditional distribution channels.
Cost-Effective Business Decisions
Brands face multiple trial and errors while testing their product launch in traditional market, leading to cost and time issues. With D2C model, brands can easily gain insightful data without wasting time on experimentation and distributions.
To sum it up, D2C Model has given businesses an opportunity to sustain reputation in such trying times by enabling them to enhance their customer experience.
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