Why Wholesale Businesses Should Adopt the DTC Model

The growing consumer demand for custom-made services and goods presents a valuable opportunity for brands to adopt the direct-to-consumer (DTC) model. DTC brands can directly introduce products to their target audience while consumers can receive maximum purchase satisfaction and maintain an interactive connection with the brand.

According to 2020 statistics, DTC for native digital brands in the US exceeded $25 billion. Experts predict that these figures will exceed $43 billion by 2023.

Here are some reasons why this eCommerce model might be ideal for your wholesale business:

A Reinforcement of Your Brand

Buyers today want to understand a brand and its services. They are looking for a brand that provides high-quality products and a distinct user experience from start to finish.

Directly approaching the consumer gives you control over the consumer's journey with your brand. Unlike in the traditional retail industry, where inefficient business systems and inept retail staff can derail your brand, DTC allows entrepreneurs to execute plans as they see fit.

An Increase in Sales

Your brand may suffer losses as the traditional retail industry becomes more crowded. In this case, a DTC model provides an excellent opportunity for businesses to reclaim sales that they may have previously overlooked. It is also worth noting that this model provides wholesale businesses with greater opportunities to overcome barriers that exist in traditional retail.

A direct avenue concept with your customers will allow you to come up with new ways to target and reach them, which means you have more opportunities to broaden your customer base and increase your sales volume. Furthermore, DTC brands are not restricted geographically as traditional retail stores are.

A Deeper Connection with Customers

The opportunity to form a deep relationship with your customers is a core benefit of the DTC model. Today, various eCommerce systems allow brands to evaluate and compile customer data and information they need to offer a highly customized shopping experience. As a result, businesses can utilize smart customer data to offer a better shopping experience. 

Sweet Tips from Ally

The DTC model enables wholesalers to increase their growth, sales, and revenue. It is nearly impossible to find such advantages in a traditional wholesale marketing strategy. Entrepreneurs who want to expand their wholesale businesses should thus consider adopting the DTC model.