RetailDive: Analysts throw cold water on the great DTC pivot
Many brands are growing their DTC (D2C) channels, but a recent report by BMO Capital Markets suggests they may be a shooting themselves in the foot--which their retailers may be happy to hear. The report shares that wholesale is more profitable overall than selling direct.
A few things have enabled brands to grow their DTC aspirations:
Selling to customers via the brand's own e-commerce website.
Tracking customers using social media and ad networks (aka surveillance, remarketing).
Updated warehouses with increased 3PL services. Today's warehouses can more easily ship one small order.