Benefits and Concerns of Implementing a D2C Channel

It’s not surprising that companies avoid change for fear of the unknown, and implementing a direct sales channel can be an adventure into unchartered territory for many manufacturers. Naturally, manufacturers will have concerns about embarking on the journey to selling direct.   Nevertheless, abandoning the thought of selling direct simply because of concerns is not an option, given the current condition of the retail industry. The benefits of a direct to customer channel are compelling, and go beyond sales revenues.

The Concerns of Opening a Direct Online Sales Channel

• Expenses of execution and management — resolved by using the TOTALCommerce™ managed services model.
• Lack of resources to manage the online channel— solved by working with a partner who has all the components already in place.
• Channel conflict- challenged by industry research that argues conflict can be healthy when properly managed. 
• Decision makers are uncomfortable with the level of risk —Jagged Peak’s solution simplifies the decision making process by supporting a direct correlation to revenue. Decision makers can feel a lot more comfortable with the progression of a direct-to-customer strategy.

The Benefits Go Beyond Sales

• Protect your advertised product pricing (MAP)
• Retain the entire profit margin
• Give your customers what they want- the option of buying direct
• Full representation of your product line, without the distraction of your competitors and private-label products
• Harvest post-sales marketing data for customer loyalty programs
• Faster reaction to market trends
• Test new products and promotions
• Control of brand and merchandising efforts

With all these benefits at your fingertips, can you afford to miss the opportunity?