Question: D2C Direct to Consumer vs. Amazon Optional 1 Direct-to-Consumer (D2C) is an e-commerce strategy where manufacturers have end- to-end control of creating, marketing and selling
D2C Direct to Consumer vs. Amazon Optional 1 Direct-to-Consumer (D2C) is an e-commerce strategy where manufacturers have end- to-end control of creating, marketing and selling their products directly to consumers via digital channels. Compared to traditional retail, which relies on distributors and wholesalers, the D2C model eliminates the middleman, allowing manufacturers more control over their brands. With businesses around the world forced to adapt their models to survive during COVID, the fuller control that direct-to-consumer selling offered brands became significantly more appealing almost instantly. In the US, D2C ecommerce sales have more than tripled in the last 6 years, seeing the market grow from $36.08bn to $128.33bn in 2021. While technically a B2C model, Amazon is popular with direct-to-consumer brands looking to expand their reach and increase their sales, and actively encourages D2C
brands to join their network. In addition increased visitor traffic, D2C brands can leverage Amazons reputation as a well-established online shopping brand and buyers have peace of mind about customer service and order fulfillment and can shop more confidently. Question>> What can be the possible disadvantages of using Amazon as part of your D2C model? Or are there just as many reasons to seek out a blended approach (hybrid) rather than to go D2C-only model? (12 points)
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