M2C Ecommerce In 2024? Why not?
Remember those long lines of empty store shelves during the pandemic? While it wasn’t ideal for shoppers, it created a golden opportunity for manufacturers. With fewer stores competing for space, manufacturers can now reach customers directly through online sales.
This “direct-to-consumer” (DTC) approach is a win-win. Manufacturers gain more control over their brand, how their products are presented, and even the prices. They can also build a closer relationship with their customers.
But it’s not just manufacturers who benefit. Shoppers are excited about DTC options too! They get access to a wider variety of products, often at lower prices, and can sometimes even connect directly with the brand they love. In fact, most shoppers these days expect to be able to interact directly with the brands they buy from.
The good news? You don’t need to be a giant corporation to jump on the DTC bandwagon. Thanks to online sales platforms, it’s easier than ever for manufacturers to start selling directly to consumers.
Forget the days when you needed a huge store, a massive advertising budget, or even your own factory to compete. Now, all you need is an online store and a plan to manage your business.
So, if you’re a manufacturer who’s ready to take charge and connect directly with your customers, keep reading! We’ll show you how to get started and what exciting benefits await you.
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The Business Model from Producer to End-User
Imagine a product going on a long journey before it reaches your hands. That’s the traditional retail model, where manufacturers sell to wholesalers, distributors, and finally retailers before it hits the shelves. But the M2C Ecommerce, or manufacturer-to-consumer, business model is a new way of doing things.
Think of it like this: M2C Ecommerce is like taking a shortcut. Manufacturers bypass all the middlemen and sell directly to you, the customer. This has some pretty cool advantages for both sides.
For Manufacturers
- Stronger Relationships: M2C lets manufacturers connect directly with you. This means they can hear your feedback firsthand and use it to make even better products.
- Competitive Prices: By cutting out the middleman, manufacturers can potentially offer lower prices because they don’t have to share profits.
- Creative Marketing: M2C allows manufacturers to get more creative with advertising their products.
For Customers
- Wider Selection: M2C gives you access to a wider variety of products, since you’re not limited to what retailers choose to stock.
- Potentially Lower Prices: Just like for manufacturers, cutting out the middleman can sometimes mean lower prices for you, too.
- Direct Connection: With M2C, you can sometimes connect directly with the brand you love, ask questions, and get personalized recommendations.
The M2C Ecommerce market is booming! In the US alone, digital M2C sales grew a whopping 45.5% from 2019 to 2020. This trend is expected to continue, with sales reaching an estimated $175 billion by 2023. That’s a huge opportunity for manufacturers and customers to board the M2C train!
Strategies for Manufacturers to Market Products Directly to Consumers
The traditional selling model through wholesalers and retailers has its place, but the M2C approach offers exciting possibilities. Before you dive in, however, it’s important to understand the differences between selling to businesses and directly to consumers.
Here are 7 key tips and strategies to equip you for your M2C journey!
Spotting market opportunities
Before launching your M2C Ecommerce adventure, deeply dive into the market landscape. Jumping in blind can lead to disaster.
In-depth research is your best weapon. Here’s how to use it:
- Is There Demand? Make sure there are actual customers who want your product. Research consumer trends and identify a clear need.
- Who’s Already There? Identify your competitors. Don’t try to go head-to-head with retail giants like Amazon or Walmart.
- Find Your Niche! Look for gaps in the market – areas with few competitors but lots of potential for growth. The less competition you face, the more room you have to innovate and establish yourself.
A shining example: BigCommerce merchant Burrow. Frustrated by overpriced, low-quality furniture, they saw a gap in the market. Their solution? High-quality, modular furniture that’s easy to move. By identifying this niche, Burrow carved out a space for itself and created a new market segment.
Assemble a team and set goals
Going M2C Ecommerce isn’t just about changing who you sell to – it’s a whole new way of thinking for your entire company. That’s why getting everyone on board is crucial.
Here’s how to ensure a smooth transition:
- Stakeholder Support: Make sure everyone involved, from management to employees, understands the M2C shift and its benefits. Open communication is key.
- Rethink Partnerships: Existing retailer relationships can still be valuable. Consider using your M2C channels to supplement sales alongside them.
- Define Your “Why”: Establish clear goals for your M2C move as a team. Is it about testing a new product, building stronger customer relationships, or gaining a competitive edge? Shared goals keep everyone moving in the same direction.
Grasp the wants and needs of the target market
In the M2C Ecommerce, your customers are king (or queen). Understanding their needs and desires is the key to building a successful business.
Here’s how to get inside your target audience’s head:
- Beyond Market Gaps: Researching gaps is important, but it’s not enough. You also need to understand who your ideal customer is and how they make buying decisions.
- Data to the Rescue: Consumer behavior analytics are your friend. Use them to see where your target audience spends time online and how you can best reach them.
- Listen Up!: Consider surveys, social media listening, and focus groups to gather direct feedback from potential customers. This can reveal valuable insights into their needs and preferences.
By truly understanding your audience, you can tailor your products, marketing strategy, and overall brand experience to resonate with them on a deeper level. This will lead to increased sales, brand loyalty, and long-term success.
Utilize appropriate platforms to reach your audience
One of the biggest perks of M2C Ecommerce is building a closer relationship with your customers. But how do you connect with them? The answer: the right channels!
Here’s how to find your audience’s hangout spots:
- Channel Surfing: Research where your customers shop and spend their online time. Do they browse Instagram for new products? Are they LinkedIn power users? Do they rely on Amazon for most purchases?
- Focus, Don’t Scatter: Don’t try to be everywhere at once! Spreading yourself thin can waste resources. Pick a few high-potential channels and dedicate your efforts there.
- Seamless Symphony: No matter which channels you choose, ensure a smooth experience across all of them. This is called “omnichannel marketing” – a consistent brand message everywhere you sell.
Case Study: LARQ’s Multi-Channel Magic
LARQ, a self-cleaning water bottle brand, is a master of multi-channel marketing. They promote themselves on Twitter, YouTube, Instagram Shoppable Posts, and Facebook Shop.
This allows them to reach their target audience in various online spaces, leading to better connections and a more positive customer experience.
By understanding your customers’ preferred channels and delivering a consistent brand message across them, you can build lasting relationships and drive sales.
Timing is crucial
timing is crucial when transitioning from a manufacturer to a full-blown brand. Here’s how to ensure a smooth launch:
- Spread the Word: Don’t let your launch day sneak up on your customers! Generate excitement by creating a launch timeline and promoting it.
- Strategic Launch Dates: Consider launching around holidays or plan events/conferences to boost visibility.
- Social Media Buzz: Utilize social media channels to build anticipation with video teasers, product sneak peeks, and exciting giveaways. Get your future customers eager to shop your new line!
By creating a well-timed launch strategy, you can generate excitement, attract early adopters, and set your M2C business on the path to success.
Offer customization options to customers
Shopping shouldn’t be a chore! it should be an experience! And what’s more exciting than making a product your own? Offering product personalization is a double win for your M2C business!
- Stand Out from the Crowd: Personalization sets you apart from competitors who offer generic products.
- Customer Insights Goldmine: Track personalized product choices to see what features, styles, and colors resonate most with your audience. This valuable data can guide future product development.
Did you know? A 2019 Deloitte study found that 36% of customers crave personalization, and nearly half (48%) are willing to wait longer for a customized product or service!
Example – Skullcandy Rocks Personalization.
Skullcandy, a lifestyle audio brand, understands the power of personalization. Their website allows both individual customers and organizations to customize headphones and earbuds. Simply choose your product, desired color, logo, and quantity, and Skullcandy takes care of the rest!
Offering personalization options can create a more engaging shopping experience, gather valuable customer insights, and ultimately boost sales and brand loyalty.
What are Benefits for the Consumer when Buying Directly From Wholesalers
While Manufacturers Go M2C, Wholesalers Still Offer Value to Consumers. Here’s why!
Price Wars
Wholesalers often carry similar products from multiple brands. This competition between brands benefits you! Wholesalers can offer competitive pricing because they buy in bulk from manufacturers, and you can compare prices more easily to find the best deal for your budget.
Shop All Under One Roof
Unlike manufacturers who only offer their own brands, wholesalers are like giant online or physical marketplaces. They stock a wide variety of products from many brands.
This makes it a breeze for the customer, to find everything you need in one place. Imagine buying groceries – hitting one store for all your favorite brands instead of visiting multiple manufacturer websites!
Returns and Service Made Easy
Many wholesalers and retailers have physical stores alongside their online presence. This means you can enjoy the convenience of online shopping with the option to pick up or return your purchases in-store. Plus, seeing and testing a product in person before you buy can give you more confidence in your decision.
So, while manufacturers are increasingly reaching out directly to consumers, wholesalers remain valuable for shoppers who appreciate one-stop shopping, price comparison options, and the ease of in-store returns and service.
What are Benefits for the Consumer when Buying Directly From Manufacturers?
Traditionally, manufacturers relied on wholesalers and retailers to get their products to you, the consumer. This meant they saw a smaller profit compared to the middlemen. But M2C cuts out the middleman, allowing manufacturers to connect directly with you and offer some pretty cool benefits!
Stronger Brand Connections
Ever feel disconnected from the brands you buy from? M2C fosters a closer relationship. By buying directly from the manufacturer, you can connect with the brand directly, learn more about their story and values, and even interact with them on social media. This deeper connection can make you a more loyal customer.
Studies show that over three-quarters of shoppers (76%) prefer to buy from brands they feel connected to, and more than half (57%) are willing to spend more with a brand they feel a connection with. So, M2C can be a win-win for both you and the manufacturer!
Competitive Pricing
Manufacturers don’t have the expense of running physical stores. This often means they can offer lower prices by eliminating the markups added by wholesalers and retailers. So, you get more bang for your buck!
Complete Brand Selection
Have you ever fallen in love with a brand but couldn’t find all their products at a store? That’s because retailers typically only carry a limited selection.
With M2C, you can shop directly from the manufacturer’s online store, which means access to their entire product line – all colors, styles, and sizes!
Conclusion
Although considerably more prevalent nowadays, the manufacturer-to-consumer phenomenon was initially a substantial departure from the conventional model. And if you’re a manufacturing brand contemplating embracing M2C, this can feel like a significant leap.
While eliminating intermediaries from your supply chain does indeed offer perks, such as deeper customer connections and the capacity to provide lower pricing! It also presents its own set of challenges. Particularly for small enterprises, lacking the appropriate technology or the bandwidth to manage operations can pose formidable obstacles that necessitate resolution.
However, if you’ve decided to take the plunge and launch your M2C platform, fortunately, you need not traverse this path alone. With the assistance of this guide and an unwavering commitment to serving your customers admirably, you’ll be equipped to embark on your M2C journey with complete confidence.