D2C

D2C, short for direct-to-consumer, is a business model in which a brand sells products directly to end customers, bypassing traditional intermediaries such as wholesalers and retailers. The term became prominent with the rise of e-commerce and social media in the 2010s, though direct selling has historical roots. In a D2C framework, the brand typically controls product development, marketing, pricing, and customer data, and uses its own channels to reach buyers.

Channels commonly include brand-owned websites and mobile apps, as well as social-commerce features on platforms like Instagram, Facebook, and TikTok. Some D2C brands also experiment with marketplaces, but the emphasis is on direct relationships with customers. Revenue models can be traditional one-time purchases, subscriptions, or hybrid arrangements that combine direct sales with other routes.

Benefits of the D2C model include higher gross margins, greater pricing and product-control, and a richer understanding of customers through data and feedback. It can shorten the product cycle and enable faster experimentation. However, it also presents challenges: customer acquisition costs can be high in competitive markets; brands must manage fulfillment, returns, and customer service; reliance on paid advertising and platform changes introduces risk; and maintaining consistent brand experience across touchpoints requires significant operational investment.

Market dynamics: many consumer brands use D2C as a core channel while still leveraging wholesale or marketplaces for reach. Examples include Warby Parker, Allbirds, Glossier, and Dollar Shave Club. Metrics such as CAC, lifetime value, gross margin, retention, and net promoter scores are commonly tracked to assess performance.