Direct-to-consumer (DTC) is a sales model in which retailers sell and ship directly to consumers or customers, “direct to customer,” without using wholesalers or distributors.
In a traditional retail model, the retail organization relies on a manufacturer to create products, a wholesaler to organize and store products, and a distributor to manage fulfillment processes. In a direct-to-consumer (DTC) model, the retailer skips the middle steps of this process to organize, package, and ship products directly from their own stock.
The direct-to-consumer (DTC) model has several benefits for both retailers and consumers. Within this model, retailers have complete control over the entire fulfillment process. They can make adjustments to their workflow without needing to align with any third-party organizations. The model also gives them the opportunity to gather feedback directly from customers to enhance and refine their fulfillment processes.
The model gives consumers the potential for a quicker, more streamlined fulfillment process that better aligns with their needs and values. In fact, many retail organizations are shifting to direct-to-consumer (DTC) because of consumer demand.