On the surface DTC seems like a no-brainer: Cut out the middleman, increase margins, gain customer insights in an increasingly crowded retail marketplace. However, this pivot will still be difficult for larger brands. Let’s take a look at some of the roadblocks and lessons retailers can learn from those who have been successful.
The monumental shift to ecommerce is causing businesses to re-evaluate their fulfillment experience to make sure they get it right. At the heart of that process is understanding how to improve the status quo by putting the customer relationship front and center. The stakes are high, but those who get it right will see substantial growth.
Nike is shutting out nine of its retail partners as the company continues a major focus and shift toward direct-to-consumer (DTC) sales, according to a note from Susquehanna Financial Group analyst Sam Poser. The nine retailers are Belk, Dillard’s, Zappos, Boscov’s, Bob’s Stores, Fred Meyer, EBLens, VIM and City Blue.
The National Retail Federation and the International Council of Shopping Centers are asking the Trump administration and the federal government for relief for members who are being hard hit by the coronavirus crisis, much as are other industries such as airlines and hospitality, as mall, store and restaurant closures grow.
Amazon has temporarily suspended fulfillment of non-essential items through FBA through April 5, due to high coronavirus-related demand. Meanwhile, retail and DTC brands are closing their doors, while UPS assures customers their deliveries are safe, and major e-grocery delivery app downloads are setting records daily.
With Amazon largely credited for the 115% spike in third quarter 2019 ecommerce ad spend, it’s no surprise that Feedvisor’s annual brand report shows 75% of brands selling on Amazon also advertise there. Feedvisor found 83% of brands advertising on Amazon saw a 4x return on ad spend, with half seeing 7x.
The U.S. government is cracking down on the sale of counterfeit ecommerce items and pirated goods, warning of stricter rules and penalties for participants in a rogue economy that was valued at $509 billion in 2016. A DHS report announcing the crackdown came in response to an April 2019 memorandum from President Trump.
It is the synthesis of things Amazon does so well that makes it seemingly invulnerable. To me, trying to beat Amazon on just logistics without a symbiotic combination of brand, merchandising, marketing, technology and a financial war chest is just pure, unadulterated sophistry. Is there such a thing as an effective anti-Amazon strategy?
One thing is clear: we’re living in a subscription service economy that is only going to expand. Brands from Nike and Bloomingdales to Coca-Cola, Mercato and GNC have taken the plunge, and organizations across all industries are seeing subscription offerings as a growth engine. Here are 4 predictions for subscription services in 2020.
In 2019, over half of shoppers say they’re conscious of the environmental practices of retailers they shop with. At the same time, they love overnight shipping and free returns, which impact the environment. Retailers, striving to please consumers and be sustainable, are caught in the middle. Here are some ways to address the dilemma.