What is D2C?

D2C (Direct-to-Consumer) refers to a model where a manufacturer or brand sells products manufactured in-house directly to consumers without going through an intermediary. If you are interested in selling your brand on Amazon, please check out this page.

    What is D2C (Direct to Consumer)?

    what is d2c
    D2C refers to a model where a manufacturer or brand sells products manufactured in-house to direct consumers using the company's EC site or social media (information channel) without involving wholesalers, retail stores, sales agents, etc. It's easy to confuse D2C and B2C, but B2C refers to transactions between companies and consumers in general. For example, EC malls like Amazon are B2C because they do business with consumers, but since they are not manufacturers, they aren’t considered D2C.
    Here, you can find an overview on growing D2C brands and the advantages of promoting sales on Amazon.

    Advantages and Disadvantages of D2C

    Advantages and Disadvantages

    Main advantages of D2C

    • High profitability - Since everything from product development and manufacturing to sales is carried out in-house, it’s possible to reduce intermediate costs
    • Opportunities for repeat purchases - Since you can communicate with customers directly, there’s a greater chance that they’ll become long-term fans
    • Maintaining brand image - Since everything will revolve around sales from your brand’s website, you can easily create a website that emphasizes the brand’s image

    Main disadvantages of D2C

    • Building efforts before starting sales are cost-intensive - Building an in-house EC site and setting up production/distribution systems is costly in terms of time, financing, and human resources.
    • Need to create brand awareness and attract customers - When starting out, exposure and awareness of new product brands are generally low. It takes money and effort in terms of marketing, etc. to take action, such as attracting customers to your website, and undertaking SEO measures to raise awareness.
    • Need to fulfill orders and deliver to customers promptly - When you're just starting out, you might feel it’s easy to pack and fulfill orders on your own. But as your business grows, it’ll take more time to fulfill orders. Many customers want their orders to arrive as soon as possible.
    Amazon trucks get ready for delivery outside of a fulfillment center

    Benefits of Selling on Amazon for D2C Brands

    Up to this point, we’ve explained an overview of the advantages and disadvantages of D2C. Now, let's take a look at what advantages D2C brands have when selling on Amazon.
    1. Attract lots of customers - Hundreds of millions of customers have shopped in over 200 countries and regions on Amazon. That means there will be more opportunities for consumers to shop, including the ones who were difficult to reach with just your brand’s EC site.
    2. Access to a delivery agency - You can use FBA (Fulfillment by Amazon) services and let us handle shipping, customer service, and returns. Even when considering fees, there’s a high possibility that D2C will reduce the time and costs it takes to receive order, make deliveries, etc.
    3. A simple listing process - Getting started is as simple as creating a seller account and adding products one product at a time. It’s also possible to make listings gradually, starting with only products that are already popular in D2C.
    4. Brand appeal on the product page - Using a function called A+ Content on the product page lets you promote your products and create brand appeal with images, etc.
    5. Brand store page - You can use free tools (such as creating a brand store) to increase brand awareness on Amazon without compromising your brand style. You don’t need special knowledge to create your web page - the good thing about it is that anyone can easily create one.
    6. Advertising - Sponsored Product Ads, a function that makes it easier to find products sold by your company from a large number of products, can be operated easily and safely, even by beginners. Also, you can use it to generate reports on sales and performance of ad eligible products and targets, etc. These analyses are useful for identifying strategies and optimizing campaigns.
    The points above represent the main advantages, but you can probably tell that many of the disadvantages of D2C can be eliminated by selling on Amazon, even with just the points outlined above.
    Please check below for notable costs and fees.

    Useful information

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