Written by Sven Van Hoorebeeck
Ultimate convenience is a future commodity. A growing consumer trend, enhanced by technology, is the zero-effort purchase. Consumer purchasing behavior goes towards solutions that require the minimal effort possible to receive value.
Online purchases and direct-to-consumer (D2C) channels answer the zero-effort purchase trend with convenience: Consumers buy from remote digital touchpoints, get deliveries at home, and communicate directly with the seller. Consumers love it, resulting in D2C sales tripled between 2017 and 2020.
Consumers are not the only ones benefiting from a D2C channel; manufacturers can also reap value from D2C. There are four key opportunities for manufacturers to capitalize on D2C activities:
1) Unlocking higher margins and a higher volume of sales
For manufacturers, the direct-to-consumer channel represents a higher margin of 5% to 15%  compared to other B2B/ B2C distribution channels.
In a direct-to-consumer channel, companies reduce the number of intermediaries between production and customers, internalizing the margins that went to intermediaries in the past.
Illustration from BrightWolves: Direct-to-consumer channel reduces the number of intermediaries to reach the consumer
An increase in margins is also coupled with an increase in sales volumes.