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What is D2C/DTC?

Definition and meaning of D2C/DTC:

dai·rekt too kuhn·syoo·muh

Direct to consumer (D2C/DTC) is a business model where companies sell products directly to consumers without going through traditional retail channels.

The idea is that you sell your products exclusively through your channels without third parties (ex., distributors, retailers, and wholesalers). Though they don’t have to, most D2C businesses operate online today.

Key advantages of DTC:

  • granular control over every detail
  • closer relationships with customers
  • direct communication with customers
  • lower long-term expenses
  • higher profit margins
  • you own customer data
  • a complete picture of who buys your products and why

Key disadvantages of DTC:

  • harder to reach broader markets
  • larger short-term expenses (ex., marketing)
  • more details
  • more time to start and reach a market

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