Flexible Options to Build Your D2C Business

In 2008, Internet Retailer reported double digit growth for online sales while traditional retailing declined by more than 4%. As more and more manufacturers recognize the revenue potentials of a D2C channel, more and more realize the question to be answered is not whether or not to implement a direct-to-customer channel, but rather how. Up until the last few years, channel conflict avoidance was at the heart of most manufacturers’ internet strategy. However, that’s quickly changing as manufacturers are becoming more adept at understanding the dynamics of their industries and marketplaces and are using that knowledge to create D2C strategies that do not threaten the economic interests of their existing channel partners. The choices are no longer disintermediation or do nothing. Manufacturers are learning there are many options in between and Jagged Peak is actively developing solutions to help manufactures take advantage of those options. 

Branded Web Stores

Niche Product Web Stores

Anonymous Web Stores

For manufacturers who want to establish a direct-to-customer channel but want to do so under a different brand or even separate business entity, Jagged Peak offers a “managed services” solution where we operate and manage the web store on the manufacturer’s behalf. This arms length arrangement allows the manufacturer to own the business (i.e. web property, customers and sales revenue) while minimizing any friction within the channel.  

Private “Friends and Family” Stores

Friends and family members may be your company’s best new source of untapped business. Most companies have programs in place which allow employees, employee family members and extended friends the ability to purchase company products at a discount. The shortcomings of most of these programs are they are handled through one-time or on site sales events or administered internally through HR or marketing. As such, most programs are viewed as simply an employee perk rather than a channel to move volumes of products, especially distressed or slow moving inventory. Jagged Peak’s EDGE F&F Commerce solution is a pre-developed, ready to deploy corporate web store that allows companies to quickly and inexpensively launch and operate an ongoing, perpetual “private marketplace” for invitation only customers and friends and family members. Web store access for non employees is controlled through “access keys”. For employees the system validates entry through a database match. Jagged Peak’s F&F web store solutions are being used by consumer brand companies to generate million of dollars of new sales revenue’s and profits.

Promotional Web Stores

An effective strategy to sell slow moving or distressed inventory is to deploy a promotional web store that makes products available for purchase during a fixed promotional time period. Our EDGE application allows users the ability to dynamically control the promotional start and end date timeframe for the web stores. Since the revenue potential of a promotional web store is driven by time frame or limited by the amount of inventory allocated to the program, set-up cost is an important consideration in determining the feasibility and ROI of the promotional web store initiative. Jagged Peak’s EDGE template web stores represent an ideal solution in that they are offer companies an “off-the-shelf” low cost option to expensive custom development.  

Refurbished or Returned Merchandise Web Stores

“What do we do with all of the product returns or repaired merchandise”? This is a common question being asked by company financial and logistics department managers everyday. Warehouse space is expensive and so are inventory costs. Traditional retail channels generally want nothing to do with selling less than brand new products. Even more frustrating is the knowledge that there is strong demand from consumers to buy discounted “refurbished” products, especially if they are being sold by the manufacturer with a warranty. As a result, more and more manufacturers are recognizing that the effective solution to this age old problem is to deploy an “outlet” web store. Jagged Peak’s Total Commerce solution is an ideal solution for companies who want to establish a vertical sales channel dedicated to moving returned and refurbished merchandise.

Network Retail E-Commerce

Network Retail E-Commerce is an innovative “multi-web property” solution developed by Jagged Peak for manufacturers who want to sell online in collaboration with and through its retail channel partners. With this solution, manufacturers are able to deliver to its retailer partners a branded e-commerce store in which they control and administer the product catalog (pricing) and the retail partner receives the sales orders and  controls order settlement and fulfillment. Built on the EDGE Application platform, this solution enables the manufacturer to control product presentation and pricing across an unlimited number of template e-commerce websites through a centrally managed a catalog. For the retailers, the solution provides an intuitive “easy to use” back office web interface to view and manage orders, inventory, customer information and web page content.