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Why The Direct-to-Consumer Trend Is Endangering Retailers

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There are many types of marketing technique that are used to attract customers. Some are very effective, and others only scare away potential buyers. The direct-to-consumer marketing method is when the seller sends the product straight to their buyer. There is no intermediate source of advertising. This means that TV commercials, radios, and billboards will all lose the chance to showcase that product. The direct-to-consumer trend has been shown to have a negative effect on retailers.

 

Why customers like the direct-to-consumer model

 

Many people do not enjoy solicitors, or door to door salespeople. However, customers do enjoy some aspects of having the product delivered directly to them. They like that the price is cheaper than other companies. This is because the cost of advertising is eliminated, so customers are not paying for that when they buy the product. Another benefit of this model that customers enjoy is the convenience. They need only to step outside and look in the mailbox to receive their product. There is less travel time for the customer, which is often very important to them.

 

Why manufacturers like the direct-to-consumer model

 

The method is popular among wholesalers and manufacturers because it gives them more control. They can sell their product for whatever price feels fair to them. They also can sell it without any restrictions that might have placed by a retailer. The fact that they can reach customers over the internet means that they have a greater range. The product can be sent far away to reach a customer, so there is no need to be in local range of them. Finally, manufacturers like that they have more options to showcase their products. They can show the customers their entire display of products on their website. This is less likely to happen with a retailer, because only certain products are put up for sale due to limited space. These are the products that are most likely to sell and be popular among consumers.

 

Why retailers don’t like the model

 

Manufacturers are starting to make their products and then deliver them straight to the customers. They are eliminating the need for the product to go through a retailer to be put up for sale. This means that the retailers are losing sales that could have happened in their stores. If the retailer does not have an online store, they have no way to compete against their competitors use utilize the direct-to-consumer model. When customers stop coming to the physical store, the business will be unable to support themselves any longer.

 

To conclude

 

To make both the manufacturer and the retailer happy, one method cannot solely be used. Both parties must come to a compromise about what marketing techniques they will be using. Some direct-to-consumer marketing can be paired with placing products in a physical store. The method that is decided on should appeal to the customer, manufacturer, and the retailer. In the end, everyone should have an equal opportunity to make a profit and be satisfied.

 

 

 

 

 

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