Direct to Consumer (DTC) has exploded on the international retail landscape in recent years. In the United States, direct to consumer sales are now a huge industry, providing millions with an incredible selection of goods and services. DTC enables retailers to sell directly to the consumer, eliminating the need for the middleman (retail store owners, distributors, etc.). In this new economy, having your products directly delivered to your customers can mean big profits for you.
But what about those who don't have the time, or the resources, to operate their own online businesses? The good news is that direct to consumer ecommerce has something to offer even those who are already established retailers. Many distributors and wholesalers work as third party logistics integrators for online retailers. They provide the necessary tools and inventory to allow them to sell their products directly to consumers. Often they will also be able to provide dropshipping services so that retailers will not have to worry about stocking items themselves.
Dropshipping is simply when a retailer doesn't keep stock in-house. Instead, they take delivery of that inventory from a third party and distribute it to their customers. This is often done through manufacturer direct orders. Manufacturers may send samples or proofs of their product to retailers who then place an order with them. Once that order is placed, retailers have the freedom to price their product, display their DTC brands and accept all forms of payment.
The direct to consumer ecommerce model offers a perfect opportunity for small independent retailers to take control of their own destiny. In previous decades distributors and wholesalers relied on a massive middleman chain to take care of the inventory needs of their customers. When something wasn't working out, they had to call that distributor back, often over, to see if it will be possible to get the item to the customer. Often that means having to pay additional charges as distributors attempt to work something out. This means more money out of the retailer's pocket while the customer continues to suffer.
The direct to consumer ecommerce model eliminates the need for distributors and middlemen. When items sell, the retailer takes care of shipping, stocking and any other issues that come up. The customer only has one place to go for their product needs and that is the website of the manufacturer, distributor or retailer offering the product. With no middleman or distributors involved, this presents many new opportunities for more brands and more ways to sell more products. With a smaller financial risk, more brands and more ways to advertise, more consumers are interested in shopping on the internet.
Dropshipping companies offer a flexible supply chain and a streamlined sales process. With drop shippers, retailers don't have to concern themselves with warehousing, inventory, shipping or return management. Instead, these companies will handle all of those details. They take orders, pay suppliers and get them delivered directly to the customer. Eliminating all of the hassle associated with traditional supply chains, dropshipping gives online stores an edge over their competition.
Here is a post with a general information about this topic, check it out: https://en.wikipedia.org/wiki/Marketing.