Business Model: D2C (Direct to Consumer)

Introduction

• Presenter: Sahil Khanna
• Topic: D2C, a trending business model in e-commerce
• Context: Comparison with traditional e-commerce platforms like Amazon and Flipkart.

What is D2C?

• Direct sales from a company's website to consumers.
• Examples in food delivery: Zomato and Swiggy.
• Traditional e-commerce involves aggregators who charge a commission.

Shift to D2C

• Businesses are opting to sell directly rather than through aggregators.
• Motivations for D2C:
  • Avoiding high commissions (e.g., 30% to Amazon).
  • Building and advertising their own brand.

Benefits of D2C

• Full profit retention for companies.
• Enhancing brand recall and identity.
• Control over quality and customer experience.
• Potential to expand and become an aggregator later.

Challenges of D2C

• Increased operational responsibilities:
  • Managing orders from start to finish (delivery, returns, quality).
  • Handling issues that arise during the delivery process (e.g., damage, fraud).
• Lack of support compared to larger companies with experience and legal teams.

Conclusion

• Pros and cons of the D2C model discussed.
• Engagement invitation:
  • Contact information for assistance if one wants to sell through their website.
  • Call to action to like, subscribe, and comment for more content.

Closing

• Farewell message from presenter: Indra Vandematram.