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Direct to Consumers Write for us – B2C is the business  model of selling products directly to customers and thereby passing any third party retailers, whole sellers or any other middle men. However, direct to customers sales are usually transacted online. Therefore, direct to customers brands may also operates physical retail spaces as a complement to their main e-commerce platform in a click and mortar business model.

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What is Direct-to-Consumer? Everything You Need to Know

What is Direct-to-Consumer? Everything You Need to Know

Direct-to-consumer (DTC) is a retail model where brands sell directly to new customers. However. It skips the wholesale middlemen and eliminates the need to join forces with big retail brands and brick-and-mortar stores.

Furthermore, More shoppers are making the switch to online retail. This means there’s a growing need for brands to connect directly with them. Hence, Over the past two years, consumers have been seeking out more authentic connections with brands and craving more personalized experiences, and the sheer amount of competition means there’s plenty of choice.

Indeed, Consumer brands are now faced with the task of creating exceptional, customer-led experiences. So, welcome to the birth of the direct-to-consumer model.

Using DTC to Boost Online Business

There are definite risks to embracing DTC, but the benefits may very well outweigh them. So, for ecommerce companies and online retailers with a quality product line, you’re placing a large burden on your marketing strategy and online shopping experience, but if it pays off, your business will take off.

Why Consumers Want to Buy Direct

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.

Furthermore, there’s more to the picture, though. Today’s shoppers are accustomed to enhanced access. For instance, they can chat directly with a brand’s 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..

Indeed, But shoppers are also well aware of online scams. They’ve either been caught by, or heard stories of, fake goods. However, they look like the real thing. They are branded like the real thing, but they aren’t.

So, for example, Apple says these products not only infringe on their brand, but can be dangerous. Hence, Following independent research, they filed suit this year against one of the Amazon third-party vendors (see screenshot below)

How Direct to Consumer Advertising (DTC Advertising) Works

The first direct to consumer print ad in the United States appeared in Reader’s Digest in 1981. So, The Food and Drug Administration (FDA), which is responsible for DTC advertising regulation in America, placed a moratorium on such ads in 1983 so it could devise some basic rules. Moreover, It lifted the moratorium in 1985, as few drugmakers showed interest in running such ads, though television network CBS issued its own guidelines that same year. Hence, DTC advertising was approved in New Zealand in 1981, Hong Kong in 1953, and Brazil in 2008. So, With the prevalence of socialized medicine, Europe has thus far avoided DTC advertising. For more, see this DTC advertising timeline.

There are several types of direct to consumer advertising:

  • Product claim ad: Will name a drug and summarize efficacy and risks. This is the most common type of DTC advertising.
  • Reminder ad: Generally include a product name and provide information about price or dose, but avoids making claims.
  • Help-seeking ad: Includes information about a medical condition and encourages individuals to see a doctor but generally does not name a product.

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