Why does direct-to-consumer business model matter?
D2C gives brands direct access to customer data, higher margins per sale and full control over how their products are presented and delivered. It also makes delivery performance part of the brand experience, since the customer sees the brand, not a retailer, at every stage. The trade-off is that the brand must manage fulfilment, returns and customer service itself, or pay a logistics provider to do so.
How does direct-to-consumer business model work in logistics?
A customer places an order on the brand’s website or app. The order is passed to a warehouse or fulfilment centre, where it is picked, packed and labelled with the brand’s packaging. A parcel or express carrier collects the order and delivers it to the customer’s address, and tracking information is sent back to the customer. Returns are managed through a reverse flow, and stock levels are updated in real time, so the website shows accurate availability.
Industries and operations that use D2C
- Fashion and apparel brands
- Beauty and personal care products
- Footwear and accessories
- Home décor and lifestyle products
- Consumer electronics and small appliances
- Food, drink and subscription boxes
- Sports and outdoor equipment
- Furniture and bulky home goods
Example in practice
A skincare brand based in Copenhagen, Denmark sells its products through its own website to customers in Denmark, Sweden and Germany. A customer in Hamburg places an order for a moisturiser and serum on Monday morning. The order is picked and packed at the brand’s fulfilment centre in Odense by 14:00 and collected by a parcel carrier the same afternoon. The parcel reaches the customer in Hamburg on Wednesday, and the customer receives tracking updates by email along the way. Because the brand owns the relationship, it can offer the customer a return option and a discount on the next order in the same message.