Imagine a world where you could buy your favourite products, from laptops to skincare, right off the manufacturer’s website. Oh, right — you can! In this Direct-to-Customer (D2C) model of eCommerce, sales and marketing strategies such as wholesale or Amazon are bypassed. Consumers have direct access to their preferred items at competitive prices with a more personalised experience and customisation. It‘s also an excellent way for start-ups without distribution networks to get started by offering immediate availability on newly launched goods!

Many businesses will have to rethink their business models as the retail landscape changes. One significant trend that any company previously reliant upon pure distribution models should pay attention to is how eCommerce has shifted and moved towards D2C channels, forcing companies into a position where they either innovate or face inevitable failure.

The good news is that the internet is powering a new level of global competition. New brands can start and scale their business online for less than £25,000, thanks in part to the lower entry barriers… in recent cases £1,000 and a pinch of charisma and smarts could take you to the moon.

Let’s look at the top 3 Benefits of starting a Direct-to-Consumer eCommerce Business:

1. Businesses can eliminate the middleman (barrier) between themselves and their consumers and reduce distribution costs.

2. This model gives entrepreneurs greater control of how they brand, advertise, market, and sell to customers.

3. It provides a better opportunity for feedback on what buyers want from the product / offering to increase customer satisfaction.

Here are the steps of how to start a D2C start-up from scratch. Ready, let’s dig in!

1. Choose A Niche by Closely Evaluating Your Strengths and Weaknesses

Knowing what you are good at will help you settle on an idea that you can easily flourish. If you are well-versed in the beauty industry and have adequate knowledge about beauty products, you will do well to take a leap and start a business in this line.

2. Identify Problems That Customers Face in Your Niche

Your business idea should also be aimed at solving your target market’s pressing problems. If your target market is a population looking for great “fitness products,” you must conduct the necessary market research. Spend time learning more about your target client’s needs and challenges.

3. Market Analysis and Business Planning

Begin by finding out the potential size of the audience. For example, how many children are home-schooled in the UK? Then analyse your potential competition to see whether they are already effectively satisfying this population. Find out if there are ways you can meet the needs of the customers better.

You’ll need a road map and robust plan that your eCommerce start-up business will use to grow. This “blueprint” will assist you in staying accountable to your objectives.

4. Exceptional Branding

Branding a business is the process of distinguishing it from competitors and making sure customers can tell your company apart. In essence, branding should be used to create an emotional connection between you and potential clients through marketing campaigns that resonate with their values or lifestyles.

Many considerations need to be made for the branding process as well. For example, what colour scheme should you choose? What fonts and graphics will best represent your brand? Your logo design needs to give off certain feelings, so customers want to buy from you again in the future! Branding allows people who aren’t familiar with your company or product to know they’re on board with something great before even clicking that “buy” button.

Marketing is like asking someone on a date. Branding is the reason they say yes.

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5. Find Financing

Ensure you know where you will source funds from. You can get a loan if you deem it fit. However, for those who do not want to start their businesses and online stores with debt financing, you can look around for investors. You can also consider securing grants from friends and family. A wise tip is to ensure you source adequate funds to support your start-up for a year.

6. Product Development

The whole process of inventing new products is exciting, but the product development stage has to be my favourite. Entrepreneurs typically start by working on prototypes with one or multiple potential manufacturers so they can work out any kinks before anything goes into mass production. Once you have a working version that you’re satisfied with and your manufacturer agrees to (usually after negotiating how much it will cost them), then it’s time to get down to the nitty-gritty: laying out an operational structure for your future manufacturing line.

7. Build a Team

This not only involves finding employees. It also involves striking valuable relationships and partnering with other people. You can look for collaborators who share a common business interest with you and bring them on board. They will not only help you with financial resources but also a lot of technical expertise.

8. Get Your Website Live

To start a successful eCommerce business, you need to launch your online store. I’m a fan of Shopify, simply because it’s easy for non-tech folks and pretty much integrates with everything your business will need to thrive. You will also want to integrate payment options like PayPal so that customers can easily buy what they’re looking for from the comfort of their home or office!

9. Marketing on Social Media and with Paid Advertising

There are many ways to market your eCommerce business. Paid advertising is an excellent way for companies to get relatively faster sales than organic growth. For example, you can use Facebook ads or Google AdWords with targeted advertisements explicitly tailored towards people interested in your niche and products. Using video content and influencer marketing is often effective when advertising online. Lastly, marketing would not be complete without an aggressive SEO strategy and campaign for your business. Over time, you want to see more customers and traffic originating from organic (non-paid) sources.

10. Provide Amazing Customer Support

A successful direct-to-consumer company must know the importance of having great customer support. You need to be available to answer frequently asked questions with chatbots and real-time assistants. Customer service is critical because potential customers will find some other place to buy what they want if they don’t get quick attention to their problems. Negative customer service encounters will leave a scare on your business, a bad taste in the customer’s mouth and you know what they say about bad news!

In conclusion, starting a direct-to-consumer online store from scratch can seem like an overwhelming endeavour, but with the proper knowledge and some planning, it is possible.

Now it’s time for some action! Start by choosing a niche and assessing customer needs before deciding on a product and setting up shop. Then take advantage of these tips to give yourself the best chance at success.

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Article images:
Chris Curry
Mark König

Allef Vinicius