Manufacturers that think the direct-to-consumer model is a “thing” for startups are missing out big time.
In recent years, tech-enabled manufacturing startups have launched their businesses with a direct-to-consumer (DTC) eCommerce model, controlling all aspects of the value chain and reaching consumers directly – without any middle-man. Beyond the fact that some of these startups – like Dollar Shave Club, Warby Parker and Ipsy – have grown to become billion-dollar companies, the underlying financial advantages unlocked by the model are topics that the demand the attention of manufacturers.
At Eureka Labs, we believe this trend is not reserved for startups and we have helped mid-market manufacturers implement direct-to-consumer strategies from scratch to add a new online revenue stream that’s highly profitable – without cannibalizing their core business. Financially, there are few things as positive as owning the full value chain and reaching consumers directly with your brand, while skipping middle-men for much higher profit margins.
Applying this solution can be overwhelming as Direct-to-Consumer eCommerce requires a brand-centered marketing playbook and a very specific user experience on your website, as well as adjustments on back-office processes and shipping & handling. The good thing: Eureka Labs’ has a team of experts covering all aspects of selling direct-to-consumer online and we’re better suited to help companies plan the right solution – and execute it.