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2024 DTC Ecommerce Trends: What Brands Are Adopting

2024 DTC Ecommerce Trends: What Brands Are Adopting

By Anjaly Chandran, Content Developer at Webandcrafts. She has been involved in content writing and copywriting for 5+ years, specialising in website content, blogs, copies, technical writing, case studies and whitepapers.
  • Published in Blog on September 15, 2024
  • Last Updated on November 26, 2024
  • 10 mins read
2024 DTC eCommerce Trends What Brands Are Adopting

Retail shopping experience needs to be tailored to what makes it comfortable and easy for the buyer, instead of focusing on just the retailer. DTC, or Direct-To-Consumer movement began with easy-to-ship products, usually fashion, cosmetics, skincare, etc. However, today more sophisticated items like smart home equipment are also being processed using DTC.  

D2C e-commerce sales strategy enables manufacturers and brands to sell products directly to consumers rather than involve middlemen. This is useful for businesses to gain valuable customer feedback, understand their requirements, and personalize the products according to the changing needs. 

A D2C consumer model can seem different based on the customers, brand, and the market they wish to work with. Some include marketplaces like eBay and Amazon in their channel mix, while some incorporate brick-and-mortar stores. Some depend on brand partnerships to attract mutual audiences with like-minded retailers. 

Ecommerce retail sales are expected to reach 9.4 trillion U.S. dollars by 2026 on a global scale. Many physical retailers like BestBuy and Target have adopted measures for a major shift towards DTC models. 

As shoppers become more concerned and expectations grow, brands should find ways to meet the demands, offer value, and build exceptional customer experiences. This blog discusses the significant direct-to-consumer trends that shape the e-commerce sector and gives insights into how retailers should adopt these trends.

Current DTC Landscape Overview: How DTC Ecommerce Sales Took Shape

COVID-19 ignited the fire of e-commerce sales, and by October 2020, it reached 14.7% of total retail sales. Raising steadily, it is expected to reach 20.6% by 2027. 

More and more businesses are moving online, and it became a clear necessity after the outbreak of the COVID-19 pandemic. As the usual ‘go-to’ retailers weren’t what the customers wanted then due to the disruptions in the supply chain and the pandemic’s challenges, they turned creative with online direct selling models. Isn’t it exciting that even the idea of what one should purchase online is changing? You even buy indoor plants and motor vehicle parts online, part of a great transition.  

According to the June 2023 Global Consumer Insights Pulse Survey, about 63% of shoppers have purchased products from a brand’s website directly. In the highly competitive market, consumers wish for faster delivery of products, active customer support, personalized products, and a reliable source of information – this is where DTC e-commerce trends prove amazing.

Almost half of the respondents cite factors like greater choice of products, competitive pricing, and best stock availability as the core purchase drivers, persuading them to get drawn to D2C websites, states the survey.

Leading Brands Using DTC: Moving Towards a Revolutionary Sales Strategy

Customer engagement is the key for any brand that helps them keep welcoming new trends and innovations they bring to retain attention. Adidas DTC QR codes make an excellent example to quote in this context. In partnership with Spotify, the brand has put a QR code on their Pulsebeat HD shoes that directly links to a custom playlist based on the customer’s location, ensuring every runner is set to move. Scanning the QR code lets the customers launch Spotify and enjoy the exclusive playlists. Let’s see more brand examples that use the direct-to-consumer approach in their business. 

LOLA:
LOLA, a feminine hygiene brand, wanted to improve choice and transparency in the feminine care segment. Driven by a strong desire for accessibility, they made the DTC model a core part of their business strategy. However, to expand its reach through partnerships, they have signed with retailers like Walmart to offer a strong foundation for brand authenticity, customer engagement, and innovation.  

Tesla: 
Tesla, the electric automaker has made a smaller hit than the other auto manufacturers during the COVID-19 pandemic due to their DTC model adoption. Tesla demonstrates that DTC can work well for the automobile industry. 

4. Food & Beverage DTC Taking Dominance

The global food and beverage market for e-commerce is expected to hit $903465.5 million by 2026. Due to many new players evolving in the space, the DTC segment is also growing. For instance, Magic Spoon is a breakfast cereal on low carb, and ideal for a keto diet.

Choosing to implement the DTC model or not, depends heavily on the target audience, product, current sales, and marketing ecosystem. For instance, consider a brand’s target demographics that focus on buying online frequently. Here, the brand is only concerned about bottom-line results, not logistical complications, and doesn't also rely on retail partnerships.

Food and beverage brands that leverage DTC trends can gain the following benefits:

  • Customize and brand the buying experience. 
  • Maintain customer relationship, and ownership and allow access to crucial first-party data to fuel future growth. 
  • Build, manage, and grow individual DTC sales channels. 
  • Great control over fees, pricing, and profit margins with DTC.

5. Product Diversification

Product diversification is the most common method in which DTC brands achieve a high success rate after launch. Diversification eliminates the risk in a downturn and paves the way for an additional barrier against competition.

Let’s learn the two diversification techniques DTC brands use:

  • The brand expands color, personalization, and sizing options for the existing products; 
  • The brand expands to entirely different and complementary products.

Burrow is an example of product diversification. They began with modular couches but now sell additional home items such as rugs, shelving, coffee tables, throw pillows, etc.

6. Subscription Models & Loyalty Programs

DTC brands combine loyalty programs and subscription models to build excellent customer value propositions. This will eventually lead to higher customer lifetime value, improved brand loyalty, and a competitive position in the marketplace.

Here’s how these programs evolve:

  • Subscription models deliver curated experiences that resonate best with the customer's values and lifestyle.  
  • With subscriptions, brands can let customers pause, skip, or customize the intervals and contents, enabling them to exercise high control over expenditure. 
  • Loyalty programs like tiered reward systems, personalized rewards, and community and brand advocacy help to improve engagement, and deepen the emotional connection with the brand.

7. Omnichannel & Flexible Fulfillment

Omnichannel retailing and the growing demand for flexible fulfillment features craft how DTC brands align with customers’ requirements flexibly and conveniently. An Order Management System (OMS) is essential to enabling fulfillment models, which support the effortless integration of sales and distribution channels.

  • BOPIS: A consumer-preferred technique that blends online shopping convenience with prompt in-store pickup. OMS syncs online orders with the inventory and ensures the products are ready for quick customer pickup.
  • Ship from Store: Brick-and-mortar stores ship orders directly to consumers, offering flexible fulfillment. An Order Management System (OMS) manages this by determining which stores can efficiently fulfill orders, transforming assets into e-commerce resources.
  • Curbside Pickup: Curbside pickup helps customers collect purchases without entering the store. OMS manages the order preparation and customer notifications to ensure a swift pickup process.
  • Same Day & Next Day Delivery: Speed is crucial in driving customer satisfaction. OMS offers real-time inventory visibility, logistics coordination, and quick order processing to meet customer expectations for faster service.
  • Buy Online Return In-Store (BORIS): BORIS lets customers who made online purchases return the items in-store. It improves customer convenience, offering a direct return process and prompt resolution.

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8. Composable Commerce-Driven Tech Stacks  

Composable commerce involves building a scalable and flexible tech stack that enables brands to choose and integrate the best-suited technologies for their specific requirements.

Emphasizing customization and scalability lets brands custom-tailor the tech stack to align with the business model and ensure technology follows great pace with the business. With the right tech stack, brands can adapt to the changing trends and adopt new technologies.

Role of OMS in Composable Commerce

  • An Order Management System offers the required infrastructure to make flawless operations and improve customer experiences. 
  • OMS is a cornerstone of commerce architecture, inventory management, and order fulfillment across multiple touchpoints and channels, maintaining high efficiency. 
  • The capability to integrate seamlessly into other systems marks the key strength of OMS. This interoperability helps build a unified tech stack that drives operational excellence. 
  • A composable commerce approach enables DTC brands to quickly integrate new functionalities and move ahead of the buyers’ trends.

9. Chatbots for Improved Customer Experience

Chatbots have been increasingly used by e-commerce platforms these days. Chatbots will be the primary customer support channel for almost a quarter of all businesses by 2027, predicts Gartner.  

As AI technology takes new phases in the DTC space, customers have become highly comfortable with chatbots, and more automated tools are used to answer product queries, order concerns, manage product returns, and provide general information.

Casper, an online sleep products retailer, launched AI-driven chatbots to improve customer service experience. This has let the brand provide 24*7 support, promptly and address customers’ queries and issues.

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10. Wholesale Expansion

Being a good D2C strategy for brands to reach a larger audience, enhance revenue, and improve visibility, the wholesale expansion also contributes to a highly predictable income source compared to the unpredictable DTC sales.    
Many DTC brand examples have expanded to wholesale and also have their retail business operations. One such example is Warby Parker, which has store locations across the United States of America. Casper, again is another example, where customers can purchase mattresses from stores like Target, Rooms To Go, etc.  

Getting Started With DTC Ecommerce: How WAC Helps Your Brand Get There

Customer relationships are significant regardless of what method you adopt to sell the products. Considering the DTC sales, you should be aware of the latest trends. A brand should always be careful of the increased competition, advertising expenses, and Customer Acquisition Costs (CAC), and be ready to capitalize on the opportunities revolving around data management, customer experience, and wholesale. As the conventional retail business has been eventually taken over by D2C e-commerce, we can expect more customer-focused initiatives that can take e-commerce business to newer heights. 

As the e-commerce trends have been taking new shapes, and witnessing fast-paced growth, it is important to stay aligned with the current competitive market. With the support of the best e-commerce website development company, you can stay ahead and adopt the latest DTC e-commerce trends to your business. 

WAC has a knack for knowing your business, analyzing the DTC e-commerce possibilities, and proposing the right route to take your business along. With the right team to support you, WAC takes your e-commerce business along the right path with e-commerce development services including the best e-commerce app development, e-commerce website development service, and custom e-commerce development. Let’s get started!

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