Direct-to-consumer
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Direct-to-consumer (DTC) or business-to-consumer (B2C) is the business model of selling products directly to customers and thereby bypassing any third-party
History
Direct-to-consumer became immensely popular during the dot-com bubble of the late 1990s when it was mainly used to refer to online retailers who sold products and services to consumers through the Internet.[2]
This business model originated before modern
As new modes of transport kept emerging (
The emergence of the Internet further increased access to many different types of goods and services, and increased competition meant that businesses had to put additional effort to win and keep customers.
Advantages and disadvantages
Direct-to-consumer enjoys lower costs compared to physical retail, as it has reduced the number of different business components like
DTC enables smaller companies to compete with large and successful companies in terms of price, availability of the products, and quality since costs are lower.[4] Direct-to-consumer sales can drive stronger brand loyalty and customer retention.[2]
The main risks in the online Direct-to-consumer are expanding
See also
- Retail
- Disintermediation
- Consumer-to-business
- Over-the-top media service
- Marketing channel
- Wholesale fashion distribution
- Types of e-commerce
References
- ^ "U.S. D2C e-commerce sales 2024". Statista. Retrieved 2023-10-20.
- ^ a b Business-to-Consumer (Direct-to-consumer), May 20, 2019
- ^ Advantages and disadvantages of Direct-to-consumer Archived 2021-12-31 at the Wayback Machine Study for Business, October 15, 2018
- ^ Advantages and disadvantages of Direct-to-consumer Archived 2021-12-31 at the Wayback Machine study4business.com October 15, 2018
- ^ Braverman, Alan; Fu, Samantha (March 22, 2021). "Direct-to-Consumer Challenges: Assessing Risk, Liability and Cyber Threats". EisnerAmper.