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Top Ten Factors That Affect a D2C Business Model !

By Aresh Mishra
Businesses have profited financially and operationally from implementing the D2C business model. To ensure that the model continues to provide what consumers want, though, it is still important to plan for the future.

When you think of D2C startups, you probably picture a group of millennials with a super-hip social media presence and an unlimited budget. But that's not the case! It's surprising to see how many of these companies started as offline businesses before moving towards e-commerce.

A direct-to-consumer (D2C) company produces goods and sells them through its channels. Millennials favor simple purchases and real brand encounters. D2C brands are, therefore, well-liked among them. To function as a middleman between a producer and consumers, a B2C must rely on a retailer.

Millennials prefer direct-to-consumer (D2C) firms because they can tailor their messaging and offerings to suit their needs. Some factors that play a vital role in an effective D2C model can be helpful for startups to look at beforehand.

Growth Jockey has observed that brands need to take care of a few factors for a successful D2C business model that will enable them to enhance e-commerce sales.

10 Factors that affect a successful D2C business model

1. Competition

A D2C brand is more equipped to differentiate itself from rival brands. Despite this, they still need to look better than reputable companies and provide customers with a specific range of services that rival businesses do not. Such brands appeal to clients because of their individuality and personalization. In India's growing internet marketplace, competition can be fierce for new startups trying to attract consumers.

One of the biggest challenges for the new direct consumer and services brands is the need for an online presence. Most Indian consumers still prefer to shop in brick-and-mortar stores and are hesitant to buy from unknown brands on the internet. So how do you attract customers in this market? One way is by starting offline and then gradually moving towards e-commerce. Growth Jockey helps you develop a strategy to convert your offline store into an e-commerce business.

2. Update the strategy

Following procedures with a well-planned strategy can accelerate the success of any business model. The corporate structure appears remarkable when the business department does its duties flawlessly. However, if even one section performs well, it will reflect poorly on your brand.

Growth Jockey has observed that consumers give negative reviews mainly due to the management of transactions, delivery, exchanges, returns, or any other component of the customer experience. Even if your product is excellent, potential clients may not be interested in your brand after reading such reviews.

As a result, you should continually update your business strategy to reflect every interaction your clients have with your brand. To accomplish this, be sure what your target market anticipates, desires, and requires at each stage of the decision-making process for purchasing your items.

3. Building a brand image

So, how do you go about doing this? You could try traditional advertising or influencer marketing, but these methods can be expensive and time-consuming. If you're a startup looking to grow, it's best to focus on building your online presence instead. It will reach more customers and generate awareness for your brand.

You can start by creating an engaging website or blog, posting regularly on social media, and submitting your site to relevant directories. These initial steps will help get visitors coming through the door. Still, you'll need some strategies to convert them into paying customers.

4. Leverage your partnerships

With the assistance of partner organizations, tools, and platforms, the bulk of problems that companies with direct-to-consumer business models run into is solved. For instance, numerous technologies enable businesses to offer clients parcel monitoring services, assess shipping costs, and more.

According to a survey by Growth Jockey, with platform collaborations, companies can effectively improve their capacity to cooperate with conventional retailers. Consider the fashion industry an ideal instance that allows clients to select their front-end store in addition to their normal e-marketplace.

5. Making a shift in the mindset

After eliminating traditional stores from your clients' shopping experiences, you must take over the role of a retailer. Now that you are in charge of processing orders and concentrate on considering how you can provide the best experience for clients and streamline each step of their purchasing process.

Your website's product pages should showcase and inform clients about your products and accurately reflect customer expectations to increase sales. Customers decide whether to purchase something on product pages or move to another website. Therefore, you need to create a personalized experience for users while they are on your page.

6. Expertise

If you try to navigate D2C by trial and error, you will undoubtedly make costly mistakes before you start succeeding. Making new departments for the fulfillment, development, client acquisition and retention, content production, and other aspects of the customer experience that you haven't been in charge of until now will probably be necessary if you plan to sell D2C. Simply adding these vital areas to someone's current activities and priorities is not something you can afford to do.

Ensure your organization has the skills necessary to use and implement the new tools and procedures D2C brings to your company. And ideally, you should have someone (or a team of people) prepare a thorough profit and loss statement and outline how D2C sales would affect your firm. If you do not have the skillset in the house, you can reach out to Growth Jockey, who can help you find the right individuals for any project.

7. Customer service

Customers require motivation to purchase from D2C brands. In addition to having interesting-looking items, businesses should also provide exceptional customer service. Customers may be invited to contribute to some areas of product design, for instance, and may request additional product information from businesses. Customers who have had poor customer service in the past will instantly be attracted to a brand where customer service is of the highest caliber.

8. Target consumers

A direct-to-consumer (D2C) firm establishes relationships by interacting with its clients. These businesses must determine who their target clients are. While other companies' products are on store shelves, D2C brands' products cannot.

A consumer may not visit a D2C brand's online store if they do not find the goods appealing. Using demographic data to create consumer profiles would be a business-driving tactic. Brands can include usernames, occupations, activities, and lifestyles in the demographic data.

9. Customer expectations

In direct-to-consumer sales, every element of the customer's shopping experience will affect how they view your brand. You will be in in-charge of giving customers thorough product explanations, hassle-free checkout, timed delivery, easy exchange and return procedures, and customer care assistance. To do this, you have to ask yourself the following questions:

  • Do you want your clients to have a certain kind of purchasing experience?

  • What role does each aspect of the buying experience play in achieving your company's objectives?

  • Which divisions are in charge of making sure that customer service adheres to brand standards?

You cannot rely on one group or person to accomplish these. Direct-to-consumer investments require your company to have an effective architecture of corresponding divisions. Make sure each of these departments provides top-notch services to uphold the corporate goals.

10. Resources

You must spend money on crucial instruments to launch a D2C model and boost brand sales. Among them are transaction processing, control of consumer-brand relationships, transactional email sending, proper shipment handling, analysis of extensive consumer data introduction of live video or text interaction for customer assistance, facilitating consumer calls, etc. Your ability to scale your direct-to-consumer operations will determine whether you need to set up several warehouses for inventory management.

What should D2C brands focus on?

There are several challenges for D2C startup businesses that rely on digital capabilities. One challenge is that brands must figure out how to keep up with the ever-changing technology. It cannot be easy, particularly regarding new products or services.

Additionally, businesses must ensure they are selling their product or service in a way that is appealing and useful to customers. Another issue in building a successful D2C Business model involves the issue of sustainability.

D2C businesses must consider ways to maintain their business practices and support their employees while sustaining the environment in which they operate. It can be a challenge, especially when making decisions about marketing and strategies.

Growth Jockey helps you overcome these challenges by helping you find the right professionals with comprehensive skill sets.


Startups face many challenges in the D2C space. These include the difficulty of building a successful product, the cost of software development, and the need for partnerships for established companies. These challenges can be difficult to overcome and require dedication and the willingness to work tirelessly. However, with the right strategies and support, startups can overcome these obstacles to create successful businesses.

Businesses have profited financially and operationally from implementing the D2C business model strategy. To ensure that the model continues to provide what consumers want, it is, nevertheless, always a good idea to plan for the future. Along with the benefits, direct-to-consumer marketing shortens the time to market, enabling firms to launch products on a smaller scale and effectively plan their market expansion.

At Growth Jockey, we're dedicated to helping D2C businesses overcome the unique challenges they face in today's competitive landscape. Our customized solutions are designed to address these challenges and drive growth for your brand, whether you're a small-scale enterprise or a large corporation.
We understand that growing your D2C business can be a daunting task, but with our expertise and commitment to delivering results, you can take the next step towards unlocking your brand's potential. Contact us today and let us help you achieve the growth and success you deserve

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3rd Floor, GJPL, Time Square Building, Sushant Lok, Gurugram, 120009
Ward No. 06, Prevejabad, Sonpur Nitar Chand Wari, Sonpur, Saran, Bihar, 841101
Shreeji Tower, 3rd Floor, Guwahati, Assam, 781005
25/23, Karpaga Vinayagar Kovil St, Kandhanchanvadi Perungudi, Kancheepuram, Chennai, Tamil Nadu, 600096
19 Graham Street, Irvine, CA - 92617, US