Everything you Need to Know to Sell your B2B Brand Directly to the Consumer
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Nine out of ten people have bought a product online, and it is estimated that e-Commerce will have grown by at least 20% by the end of 2021, excellent news for the retail sector.
On the other hand, there are the Manufacturers and Distributors that operate under the B2B model. For them, the convenience of moving Directly to Consumer (DTC) sales is obvious. However, in this battle to survive and prosper, Manufacturers and Distributors will face many challenges, more than any other business model.
Moving to DTC Sales is necessary; however, achieving this conversion is not easy. One of the new priorities will be to connect your products with end-users who are impulsive and emotional. So much so that the shopping experience is more important to them than price and quality.
But how to conquer them? Who are they? In this era of Digital Commerce, Millennials and the following generations are the omnichannel consumers’ par excellence, increasingly with a tendency to “Do It yourself.” So, the communication strategy must be pyramidal and needs management’s full involvement.
Not surprisingly, some industries are experiencing a more remarkable shift in consumers from traditional retail to DTC, including wellness, apparel, and technology sectors.
The Most Relevant Challenges in the Race to DTC Sales
Fierce competition in e-commerce is a headache for every merchant, as we’ll explain below.
However, when you start your transformation to DTC, you will have to deal with much more than that. These are the most relevant challenges you will have to face:
Exceed Native Digital Brands
Native brands have a significant advantage because they know consumers well. Therefore, it is easier for them to adjust the sales strategies that help preserve their customers and maintain profitability.
Conflicts with your Retail Partners
Retail partners sell the same products as you on the same channel and to the same audience. A conflict seems inevitable. What can you do to avoid it?
- Offer more products on your DTC e-Commerce site than the majority of your retail customers.
- Create an outstanding product and publish it.
- Group several of your products and offer a kit that only you will make available.
- Never break the pricing guidelines that you expect your retail customers to adhere to.
- Promote your retailers’ physical stores.
It would be best to have multiple, reliable, secure payment options available to help drive conversions on your website, no matter who you are selling.
The New Marketing Strategies
This must be visible to people who use your products and their value to their day-to-day lives. Your new DTC content marketing plan should even serve to educate your customers about your products. Do not neglect the SEO strategy. It is vital even when the results will be evident in the long term.
Infrastructure for Compliance and Customer Service
As a Manufacturer and Distributor, these activities may not have been your priority. But when you move on to DTC sales, you need to focus on it. Consider even outsourcing customer service and logistics with a 3PL if necessary. Remember that a 3PL will handle the back-end logistics for you, including:
- Receipt of merchandise
- Selection, packing, and shipping
- Returns processing
The best thing to do is link your systems to ensure data flows transparently. But none of this will be possible if you don’t carefully prepare for the next challenge: Technology.
Flexible Technology: Business Technology Solutions
Flexible technology will be your new allies in this adventure. They must be integrated with your e-Commerce site to facilitate sales to your new target audience without neglecting your current business processes.
What should you look for? Scalability, ease to set up, agility, and a high level of customization to include all your unique needs. Please remember that there are many Business Technology Solutions providers. Take your time to choose the most appropriate one and make sure that it will accompany you in this transformation from start to finish.
What to Expect from your New DTC Website?
The challenges mentioned above represent a new opportunity for Manufacturers and Distributors. For consumers, it is ideal to go directly to a brand’s website when they want to buy a product. Therefore, you should think carefully about whether your website allows you to:
- Consolidate your new and growing source of income
- Obtain the most significant amount of data on consumer behavior. With DTC sales, you will have access to the data about your users, which opens the door to a greater understanding of what your customers want with the help of transactional information from retailers and your website. As a result, you will be ready to anticipate their needs even before they arise
- Build loyalty and trust
- Control the customer journey to create Customer-Centric experiences
The DTC website is your only vendor working 365 days a year, seven days a week, 24 hours a day. It keeps you connected with your customers and helps you increase your sales. All this happens when Business Technology Solutions, data, and your collaborators converge are in one place so that everything works perfectly.
Hear From Industry Experts
Read the latest tips, research, best practices, and insights from our community of expert B2B service providers.
Where to Start?
The key remains to manage the Supply Chain, B2B or DTC, like never before. For this, CeleriTech puts at your disposal a range of customizable solutions built under SAP Business One, which will allow you to manage your e-Commerce (EZ Digital-T) and inventory (EZ StockPro) operations. In addition, it will inform your customers throughout the shopping experience (EZ BizCom) and more.
We cover your entire end-to-end Supply Chain, from inventory and warehousing to fulfillment, shipping, and customer tracking. We help you make intelligent business decisions for a successful expansion.