Overview
Before you start selling products directly to consumers, you need to know why you are doing it. It takes time and money to successfully execute this type of selling. You will waste time and money if you do not have a clear goal. Direct-to-consumer selling is used for more than just increasing sales. It can help you:
- Identify opportunities for new product development
- Gather customer data for remarketing purposes
- Enhance existing marketing campaigns
- Build a direct relationship with customers
Direct-to-consumer selling allows you to collect customer data that will help you deliver personalized experiences and relevant marketing messages that convert.
Overview
Before starting direct-to-consumer selling, you should ask yourself the following questions to ensure you are ready to achieve your goal. Cost considerations for selling products directly to consumers, operational considerations for direct-to-consumer delivery, retail partner considerations for selling products directly to consumers, technical considerations for selling products directly to consumers.
Cost Considerations for Selling Products Directly to Consumers
Explore the differences between various infrastructures for direct-to-consumer selling, how global expansion can impact total ownership costs, and the human capital required to move to direct-to-consumer selling. #1 Which is more expensive: a local platform or a cloud-based platform? Local platforms require significant upfront investment in initial infrastructure, ongoing hosting and maintenance costs, and a specialized IT team for releases and new updates. As you expand, variable costs can significantly increase. Cloud platforms often offer more predictable cost structures and lower total ownership costs. SaaS platforms include all costs associated with servers, such as payment card industry (PCI) compliance, security, and content delivery networks (CDNs). Although you will have design and ongoing development costs, reducing recurring costs allows direct-to-consumer brands to reallocate budgets and human capital away from costly infrastructure and development and into what truly matters for retailers: strategy, customer engagement, social impact, and data-driven marketing. #2 Will I need to hire new people? If you have an existing IT team with the capability, you can handle direct-to-consumer selling internally. Otherwise, you can collaborate with a design and development agency that has experience with the platform you choose. Large consumer goods manufacturers may need to work with integration partners to link direct-to-consumer sales with an enterprise resource planning (ERP) system. You will also need to determine whether you have someone within the company to manage the direct-to-consumer sales site, including marketing, sales, and customer service.
Operational Considerations for Direct-to-Consumer Delivery
Understand the logistical challenges of moving to direct-to-consumer selling, delivery options, and the differences in shipping and packaging that impact margins.
- Am I prepared for the logistical costs of direct-to-consumer delivery?
- Why do no e-commerce platforms offer end-to-end delivery?
Source: https://www.shopify.com/ie/enterprise/30-questions-before-selling-direct-to-consumer
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