From industrial bolts to customized cookies, direct to consumer channels are on fire.
Manufacturers and distributors are adopting direct-to-consumer sales rather than use normal channels of distribution to compete with, or align with, online retailers.
Basically, people want what they want, when they want it. Sellers are using e-commerce to bypass slow and inefficient channels and own the relationship with the customer.
Tesla is a great example – the company has built its own network of direct-to-consumer dealerships, rather than relying on a franchised dealer network like all the other car makers.
It all sounds great. But fully embracing DTC sales can be a challenge. Research shows direct-to-consumer sales have a supply chain cost up to three times as high as in-store sales, Fast Company reported.
And keep in mind, for e-commerce transactions, consumers expect free or fast shipping at a low cost. But of course, there's no such thing as free shipping. Your company is paying for it in some fashion and trying to pass costs onto consumers.
With a desire to serve the customer better while maintaining profitability, e-commerce retailers are hungry for ways to turn free shipping from a loss leader into a true competitive differentiator.
There is hope. A recent survey from Digital Commerce 360 found that free shipping was more important than fast shipping. Consumers said they were willing to wait a day or more for purchases to arrive if they didn't have to pay more for the shipping.
The secret is in the inventory management system. It's the backbone of your warehouse operations. DCT retailers are adopting Logiwa at a high rate to manage the speed and complexity required to meet customer demands.
It tracks every item from the time it arrives in the warehouse to the moment it's packed in the box for shipping. Your solution should automate ordering, integrate with other business tools, and optimize the entire fulfillment process. Logiwa integrates with more than 70 popular tools including accounting and ERP systems, parcel carriers, online marketplaces, and other popular applications.
Logiwa drives 100% inventory accuracy, boosting the efficiency of picking and packing operations. It all begins when each new item is checked into inventory. Logiwa supports an omnichannel DTC fulfillment strategy for maximum efficiency. Your inventory is visible from one portal, rather than being segmented by channel or location.
For DTC e-commerce sales, a fast, efficient fulfillment process is the key. When shippers install Logiwa, they can experience up to 2.5 times more shipments using the same resources. Shipping can be a net benefit, not a loss leader. Logiwa's order picking and packing functions support fast shipping through coordination, like making sure goods reach the packing station in the correct order and designating carton sizes to reduce boxes used per order.
Ready to take your order packing operations to the next level? To find out more about what Logiwa can do for you, contact us for a demo today.