what is d2c business

Direct-to-consumer (D2C) is a business model where a company sells its products directly to customers, bypassing any third-party retailers, wholesalers, or middlemen. This model enables smaller companies to compete with larger ones in terms of price, availability, and quality since costs are lower. D2C sales can drive stronger brand loyalty and customer retention. However, D2C businesses are exposed to tasks that would otherwise be taken up by wholesalers and retailers, such as shipping, labeling, and cybersecurity. Data privacy and cybersecurity are especially important in online businesses. Accepting online payments can make D2C businesses a target for hackers and cybercriminals, exposing them to the risks of fraudulent payments and false chargebacks. The D2C model means controlling all steps of distribution and production, including gathering an enormous amount of data about customers.