It is very common and understandable for brands to sell directly to customers, but today, with the need to scale up and reach more customers, brands also need resellers to distribute products.
In this article, we will delve into the analysis of direct selling to customers and distribution of products through retailers.
Benefits of selling directly to customers
When you sell directly to customers, it’s possible to control the customer experience. Besides, when the store sells directly to customers, you will have the opportunity to interact directly with your customers and present your brand the way you want. This allows you to refine your conversion funnel and drive more sales.
If you sell directly to customers, you can stay connected with them. This helps to foster close relationships and strengthens communication over time. Staying connected with your customers is essential to getting repeat customers.
You can also increase profits if you sell directly to your customers. Third-party retailers often increase the price of goods by 50 percent or more. By making direct-to-consumer sales, brands can put most of this profit into their bottom line.
Things to concern when selling directly to customers
Navigating retailer relationships
You need to consider navigating customer relationships when selling directly to customers. There are ways to keep customers happy and coming back to you. It is important that you keep prices consistent, ensure quality, keep your existing catalog, and launch new exclusive products to attract customers.
Setting up a B2C infrastructure
The element of setting up a B2C infrastructure also needs to be considered when you sell directly to customers. You need to make sure your B2C infrastructure can handle the large volume of daily orders, packaging, and shipping processes. You also need to hire a team of e-commerce experts, including those to manage store maintenance, digital marketing, payments, anti-fraud, profitability, logistics, tax compliance and so on.
Why do brands need retailers to distribute products?
Retailers serve as an important marketing channel for brands. They sell directly to customers and this allows brands to scale, increase product sales and reach a larger audience. Brands can properly apply banners, advertisements, offers and other strategies to increase their sales in these retail stores.
For a brand, opening multiple stores into a chain is a demanding effort. However, if brands want to sell directly to customers, they can completely go through retailers. Retailers also buy products from the store and resell them at a higher price, which increases the value of your merchandise.
If your brand is having a hard time selling directly to customers or needs to find suitable retailers, you can absolutely choose the solution from ConnectPOS. This is a great tool to help brands effectively manage distribution channels or sell directly to customers.
Selling directly to customers or selling through retailers requires brands to have effective sales and management processes.
Contact us to help your brand sell directly to customers or retailers.