D2C stands for "direct-to-consumer". D2C fulfillment is the process of businesses managing their own warehouses, inventory, packing, and shipping products directly to end consumers without going through an intermediary like Amazon or shopify.
Benefits include increased margins, better control over branding and packaging, improved customer relationships through data collection, and the ability to offer incentives like loyalty programs.
Challenges include carrying the cost of shipping, managing returns and exchanges, inventory tracking, and providing excellent customer service.
D2C can work well for businesses with the resources to own warehouses and shipping operations. Consider product size and order volume. Third party logistics services can help small businesses ease into D2C.
Key steps are securing warehouse space, implementing inventory management software, contracting reliable shipping carriers, and integrating smooth order processing into your ecommerce platform.
Yes, many businesses choose to only handle key aspects in-house like branding while outsourcing the storage, packing, and shipping to third party logistics providers (3PLs).
With 3PL, businesses use an external company to handle fulfillment. With D2C, businesses handle their own fulfillment in-house without third parties.
