The Direct-to-Consumer model is evolving rapidly with the surge of e-commerce business

The consumer industry this year has largely been affected by the COVID-19 crisis. This has caused people to go online for their purchases, making a beneficial year for e-commerce. The e-commerce sector today comprises the direct-to-consumer (D2C) model and logistics automation in order to deliver seamless services and enhanced shopping experiences to merchants and customers alike. D2C model is an emerging omnichannel trend among retailers and has found a steady rise in the industry. 

Brands typically use the D2C model to manufacture, sell, promote, and ship their own products. Researches show that most people consider buying items directly from a brand online. This direct shopping behavior is giving rise to this model in today's retail sector. Since the pandemic wrecked everything from transportation to logistics and last-mile delivery to recurring costs, it imposes a major burden on retailers, D2C brands and others in the industry.

Businesses these days are majorly challenged by growing customer expectations. This propels retailers and their value chain partners to make every necessary effort in expediting and simplifying their operations with standards of service.

Logistics to Improve D2C Business

The logistics industry plays a crucial role in a business's supply chains. It helps organizations to create value for customers. In the direct-to-customer business model, logistical operations are imperative to ensure seamless business continuity. That is why logistical operations must function continuously that helps improve customer satisfaction and retention.

Embracing the right logistics strategy can provide D2C brands with positive business outcomes. It must include the right people who are aware of changes in the supply chain; utilize an adequate number of warehouses or distribution centers; measure the frequency that products should leave each warehouse or distribution center; regular reviews to find out risks in the logistics services and regular strategy revisions for optimization.

The direct-to-consumer landscape is witnessing a tremendous uptake in India. According to a report by Unicommerce, there has been a 65 percent growth in brands building their own website in the country that has led to an increase in self-shipped orders over the years. This growth trend gives customers more liberty to determine and fulfill their needs while enabling retailers to control their revenues, ramp up the shipping speed and understand customer behavior. 

The logistics ecosystem provides D2C businesses a last-mile efficiency. As online sellers have begun adopting digital technology to provide frictionless services to customers, last-mile efficiency ensures enhanced customer satisfaction that can be accomplished with the support of third-party logistics solutions. Such solutions offer automated end-to-end services, from automated warehousing to doorstep deliveries. These also help companies to deliver products on time. For instance, companies like Amazon offer same-day shipping and order placing to their customers' doorstep on time. The company also provides tracking information to customers. This is all done through the help of the right third-party logistics providers.

So, direct-to-consumer brands can gain many significant benefits by working with a third-party logistics provider that offers logistics management support. They can ensure time management, inventory management and supplier management while informing retailers regarding their products arrival to warehouses and delivery to their customers on time.