The increasing popularity of direct-to-consumer (D2C) channels has been one of the biggest business trends of the past few years, projected to generate around $187 billion by the end of 2025. As more consumers rely on online channels to make purchases, businesses have had to adapt their strategies to remain current with changing consumer behavior.

To keep up with modern buying behavior, many business-to-business (B2B) organizations are exploring ways to expand their consumer reach and revenue by launching direct-to-consumer (D2C) channels. Discover how a JD Edwards D2C platform can improve your organization’s success and expand its influence.

Is a B2B to D2C Strategy Necessary? 

In a modern world, B2B buyers want an experience that mimics their everyday life. B2B organizations have traditionally relied on distributor and wholesale networks to sell products to end-use consumers—but this method may no longer work in today’s market and could even hinder growth. 

As ecommerce has continued to grow and digital channel offerings have become increasingly important, B2B organizations should consider implementing ERP integrated ecommerce to meet their clients' expectations.

The Benefits of a B2B Brand Using a D2C Channel

There are many benefits of direct-to-consumer for manufacturers and other B2B organizations. If you’re considering adding an ecommerce channel to your operations, here are a few of the advantages organizations may enjoy.

Reach New Customers

Customers have become increasingly reliant on D2C experiences, with D2C purchases increasing by 200% from 2019 to 2020. Five years later, and this trend only continues to grow. A D2C channel enables you to meet potential customers where they are, providing a seamless online experience that is familiar to them. 

Provide More Unique, Personalized Customer Experiences

D2C channels can also improve your control over the customer experience. By selling directly to customers, B2B organizations can gain a deeper understanding of customer needs and preferences, and tailor their products and services accordingly. This can lead to increased customer loyalty and retention, as well as higher sales and profits over the long term.

Build Your Brand

Brand visibility and recognition are major benefits of a D2C model for a B2B organization, as it provides complete supply chain management control to owners who can then effectively target potential customers. If you’re looking to expand and grow your online presence, D2C offers an excellent opportunity to create a brand that appeals to your target audience.

Fuel Innovation

Digital commerce for manufacturers has the advantage of launching new products on a smaller scale, as well as testing them and collecting customer feedback. This capability enables them to understand what customers want and make improvements as needed, thereby remaining agile and offering innovative products to their customers. 

Diversify & Grow Revenue

Another reason B2B organizations might want to launch a D2C channel is to diversify their revenue streams. By relying solely on distributors and wholesalers, B2B organizations are at the mercy of those partners' business decisions and market conditions. 

Launching a D2C channel lets B2B organizations reduce their reliance on those partners and generate additional revenue streams. Furthermore, D2C models typically allow for larger profit margins on the same products, as a dealer or distributor is not required and is removed from the process.

Steps for B2B Modernization with D2C Channels

One of the most crucial steps in adopting a D2C model is to select the right technology that can meet your needs and deliver a positive UX experience to customers—all while minimizing unnecessary IT complexity. Here are some steps B2B organizations can take to ensure a smooth transition without overwhelming their current systems.

1. Evaluate Customer Base & Identify Customer Segments

When launching a D2C channel, the first step is to identify your target audience, understanding who your customers are, along with their needs and preferences. In the B2B space, your target audience may encompass businesses of all sizes, so it is essential to have a clear understanding of the industries you serve and the specific needs of your customers within those industries.

2. Understand Your Core Strengths 

As a B2B organization, you likely possess in-depth expertise in your industry and a solid understanding of your customers' needs. Make this an advantage by focusing on products and services that leverage your core strengths and address your customers' unique pain points, thereby differentiating you from your competitors. 

3. Develop a Strategy 

A D2C strategy should strike a balance between the brand’s current and future goals. It is essential to integrate the strategy with marketing, utilizing new tools and promotional mechanisms in digital channels, and adapting other areas of the business, including order management, the sales department, and logistics flows. 

An implementation strategy should include:

• Defining what products will be added to the online store 
• Setting up logistics flows to ensure a D2C strategy can be fulfilled
• Choosing order packaging and delivery vendors if needed
• Feedback loop to optimize a strategy based on analysis results 
• Asses risks related with D2C deployment

4. Choose Your D2C Platform

Choosing the right D2C platform is crucial. To succeed in the D2C space, you need a robust ecommerce platform that can efficiently handle online sales, order fulfillment, and customer service. Ensure you invest in the proper infrastructure that is user-friendly, scalable, and secure. We specialize in JD Edwards commerce integrations, helping you build a platform that meets your needs and wants. 

5. Measure & Optimize 

Once you have launched your D2C channel, you will need to monitor its performance and analyze the data to identify areas for improvement. Teams can use tools like Google Analytics to measure traffic, sales, and customer behavior. Having a JDE omnichannel solution may also allow you to view all your data in one single source of truth. 

SmarterCommerce Is Your Fully Connected Ecommerce Solution

SmarterCommerce is your go-to ecommerce solution for JD Edwards organizations looking to launch web stores. With the right ecommerce solution, organizations can launch a D2C channel without the IT complexity of supporting a non-connected solution. 

With SmarterCommerce’s JD Edwards connected ecommerce platform, your D2C operations sync in real time with orders, pricing, and inventory data—allowing you to grow without ERP disruption.

Ready to launch a robust D2C strategy for your B2B organization? Reach out to SmarterCommerce—we’ll help you find the right solution for you!