Once seen as a niche market, Direct-to-Consumer (DTC) ecommerce is proving its worth across an ever-wider range of product categories in Europe and North America, with an astounding 16.9% growth from 2021 to 2022, according to a new report:
Full Research Reports:
In North America: The Rise of Direct-to-Consumer
In Europe – The Rise of Direct-to-Consumer
In North America, the research shows that 61% of companies in retail, manufacturing, and 3PL will see DTC channels contributing more than half of their overall sales by 2026! Let’s take a look at the DTC sales opportunity from 2023-2026, challenges to anticipate, and requirements for success.
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Pursuit of a $151+ billion opportunity
Keen to reinvent their businesses for this boom, 66% of retailers in North America and 59% in Europe surveyed have increased their DTC investments over the past 3 years; many of them significant. Evidence in both regions points to a consistent consensus: now is the time to reap the benefits of a DTC offering.
Namely, brands are locking in to DTC as a method to extend their reach and create customer “stickiness” through flexible and speedy fulfillment options, order accuracy, personalization, and other offerings that connect with today’s shifting consumer beliefs.
A large part of that is having technology that can guide sustainable delivery and sourcing practices. For example, there are tools that help you quickly identify how to consolidate delivery trips or draw on nearshore suppliers when necessary. These technologies not only reduce the impact on the environment, but can also help you save big on shipping and labor.
But like all good things, DTC ecommerce has its challenges
Emerging trends like DTC ecommerce present logistical inventory challenges and inflated costs for businesses that try to retrofit old fulfillment technologies that weren’t built to manage the complexities of it all.
New strategies and technologies that introduce next-level flexibility and efficiency are table stakes to capitalizing on DTC ecommerce opportunities without huge fiscal implications, including:
- Poor warehouse productivity and higher labor costs
- Slow, missing, and incorrect data that kills the customer experience (along with sales and the bottom line)
- Integration problems with existing infrastructures including brick-and-mortar retail operations
- Barriers to rolling out new offerings quickly – particularly as products, channels, and unique services are needed
What’s required for DTC ecommerce success?
High-growth brands like Dermalogica have found modern order management and DOM software crucial to unraveling barriers to success.
Scalable DTC order fulfillment solutions like Deposco unlock fast value through operational efficiencies; smooth technology upgrades and software integrations with existing selling models; and total control over the customer experience.
Is your warehouse management or order fulfillment process ready for the current and future state of Direct-to-Consumer? Learn the challenges, strategies, and quick-win technologies needed to level-up your DTC ecommerce plan, in our new report:
👉The Rise of of Direct-to-Consumer in NORTH AMERICA
👉The Rise of of Direct-to-Consumer in EUROPE