What is direct-to-consumer (DTC)?

How the direct-to-consumer model works

A DTC brand designs or makes its products, sells them on its own site, and ships them to the customer. There's no store buyer between you and the shopper deciding what goes on the shelf.

Many DTC brands later add wholesale, marketplaces or retail partners. The difference is that their own store stays at the center.

DTC vs. wholesale vs. marketplace: how the models compare

• Who sells to the shopper · DTC: You · Wholesale: The retailer · Marketplace: You, on someone else's platform
• Margin · DTC: Highest · Wholesale: Lowest · Marketplace: In between, after fees
• Customer data · DTC: Yours · Wholesale: The retailer's · Marketplace: Mostly the marketplace's
• Who brings the traffic · DTC: You · Wholesale: The retailer · Marketplace: The marketplace, for a fee

Why discovery is the hard part for DTC brands

Owning the store means owning the traffic problem. With no retailer shelf to sit on, DTC brands pay for ads, build email lists and work for organic reach.

AI assistants are becoming another shelf. When a shopper asks what to buy, the brands named in the answer get the visit. For DTC brands, getting named is the new version of getting stocked.

How DTC brands grow without relying on paid ads

1. Build an email and SMS list from day one, and send Email and SMS flows that bring customers back.
2. Earn reviews and user-generated content (UGC) that sell for you.
3. Publish pages that answer the buying questions in your category.
4. Track whether AI assistants name you, and close the gaps.