Direct-To-Consumer Shipping Warehouse: Optimizing Your DTC System

Direct-To-Consumer


The sooner the better, people can’t wait much longer. This is why the direct-to-consumer model (D2C) has become so popular in recent years. Direct-To-Consumer is the eCommerce supplier selling directly to consumers without wholesalers and retailers in between. Many retail store brands have experimented with incorporating D2C into their business models and have generated more sales.
Follow this page to learn how direct-to-consumer fulfillment solutions can help you increase sales, increase profits, and grow your brand sustainably.

Direct-To-Consumer fulfillment is a sales channel strategy, which means that after a customer places an order on an online platform, the order enters the supplier’s warehouse system. The warehouse sees the order information, selects the items, and hands them off to the carrier for shipping.

One of the great things about doing this is going directly to consumers with no middlemen between wholesale and retail. Instead, orders are sent directly to the fulfillment center where your products are stored, and from there, they are shipped directly to your customers.

The selling of products directly to customers can bring clear and visible benefits to consumers and sellers. Without middlemen, e-commerce sellers can make more profits. The product is delivered directly to the customer, which saves time and guarantees timeliness.

The direct-to-consumer fulfillment process involves managing your own warehouse and shipping products to customers. Or cooperate with third-party logistics. Many 3pl companies manage the order fulfillment process for businesses. So many suppliers and manufacturers now sell directly to customers through 3pl partners. This will save them more money and time.

Honest FulPhilment provides precision 3pl, click here to give you a no-nonsense, scalable, automated, and fully customizable direct-to-customer solution.

Direct-To-Consumer business

What is DTC Brand?

The direct to consumer brands are a brand that controls all parts of the sales experience, from product manufacturing to marketing to direct online sales to intended end users. DTC brand is usually a digitally native brand and tends to adopt a comprehensive approach to create a unique experience for each customer. There are some good brands like Warby Parker, Burrow, and Glossier are some good examples. Now more and more brands are going direct-to-consumer.

To build a good direct-to-consumer brand, the core is to explore the needs of customers. By capturing customer data to understand your customers, more accurately you can map the customer journey, develop new products to meet consumer needs, and track shopper-related trends.

Many brands sell a specific range of products and have very specific target audiences, like Dollar Shave Club with razors.


D2C Shipping VS. Fulfillment

Shipping
D2C Shipping is part of the eCommerce fulfillment process.
D2C shipping is the process of delivering a specific order to a buyer.
Fulfillment
D2C Fulfillment is much broader, including the entire order process.
It covers all aspects of acquiring inventory, managing inventory, getting it to customers, and handling the associated aftercare.


What are the Benefits of D2C Fulfillment?

Read on to ponder some of the key benefits and challenges of a DTC strategy to help you decide whether direct-to-consumer is the path you need to explore.

Price advantageIn a traditional retail business, manufacturers, suppliers, wholesalers, distributors, and retailers are involved, taking multiple shares of profits. Prices get higher before reaching consumers. The direct-to-consumer business model is an eCommerce business model. Whereas DTC sells products and eliminates the need for all these parties by reaching the customer directly, so the end customer enjoys a lower price.

Customer InvolvementD2C companies have better management allowing users to interact directly with enterprises and even improve or customize products based on user feedback. Ensure the competitiveness and diversity of products.
So your product and DTC brand get customer acquisition, support, and retention, then you can build deep customer relationships.
D2C also can use the participation of buyers and users to increase product and brand awareness and influence, making it easier to attract new customers.

Quality ControlManufacturers do not have to go through middlemen, so they can control the quality and handling of their products. On the other hand, customers know that they are buying directly from the supplier/manufacturer, eliminating the risk of counterfeit products.

Benefits of D2C Fulfillment

What are the Challenges of D2C Fulfillment?

Direct-to-consumer fulfillment and sales emphasize speed and convenience for your customers. However, If you are not familiar with the fulfillment or do not have a sound warehouse management system, the method of ordering directly from consumers will bring risks.

Difficulty ScalingD2C may extend the order fulfillment time as the number of orders increases, so order fulfillment must not only scale, but also be able to meet the needs of the market. Therefore, there must be an excellent strategy to cooperate with the fulfillment of DTC.
It makes sense to outsource directly to a third-party provider who can help you fulfill your order.

Need More Time to Manage LogisticsIn the long-term development cycle, orders will increase significantly, and logistics management will also take more time at this time. Not having professional time to coordinate order fulfillment will waste time and money.
Managing DTC fulfillment by partnering with a 3PL can solve this problem.

How can a 3PL Help with D2C?

1

Customized PackagingPackaging can have a certain impact on the customer experience with your brand. Using 3PL services by Honest Fulphilment, it is possible to work with custom packaging companies. With unique packaging, you can stand out and make a good first impression. In this age of social media, influencers who make videos with your products can boost your D2C brand image.

2

Fast Delivery TimeUsing the 3PL service can improve delivery time, although Amazon’s delivery time is relatively fast, usually about 2 days, and successfully occupy the market. But 3PL services can also help you achieve this efficiency. This will help reduce cart abandonment and increase average order value (AOV).

3

Distributed WarehouseHonest Fulphilment offers a robust fulfillment network for affordable delivery to customers around the world. With Honest Fulphilment, the customer’s order details are sent to the warehouse closest to the customer, reducing shipping time and shipping costs.

4

No Hidden FeesMost 3PLs charge hidden fees so they can make more money. At Honest Fulphilment, we do not charge hidden fees. Our pricing is transparent so you can predict costs and understand the profit of working with us.

5

Real-time Inventory TrackingFrom setting reorder points to ensure inventory levels don’t drop below a certain level, to viewing real-time inventory counts at fulfillment center locations, Honest Fulphilment can take the stress out of managing inventory.

Optimizing your DTC System


Direct-to-Consumer Shipping: Optimizing your DTC System

1. Warehousing Requirements

In order to meet the needs of different consumers, you need to increase our warehouse storage capacity to ensure that you have all the products that consumers need, so that you can deliver goods at the same time as consumers place orders and improve delivery speed.

2. Perfect Order Management System

The order management system can help you subscribe and manage personalized orders. Perfect order management needs to inherit your products and online market, which is beneficial for the system to capture order information and send it to the fulfillment center so that you can clearly see the details of the order information.

3. Consider Finding a New Fulfillment Partner

With the increase in business volume, if your own manpower is insufficient, you can choose some third-party logistics providers. 3PL providers have professional shipping experience and can handle any issues you may have during order fulfillment and order delivery, so working with a 3PL provider is also a good option.

Conclusion

Your next step is at 3pl. Once the seller is familiar with the DTC model, it can easily increase your profit level and reduce various fees. If you are running a DTC business, be sure to choose a 3pl partner to help your D2C brand grow.

Honest FulPhilment provides a fulfillment network, backed by best-in-class fulfillment technology, helping D2C fulfillment grow increasingly. Our e-commerce partners can provide you with reliable service and delivery solutions to reach the largest number of consumers. Contact us to take this step.


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