Direct-to-consumer (DTC) eCommerce continues to evolve at an unprecedented pace. Changing consumer behaviors, technological advancements, and shifting market dynamics emphasize the need for agility to stay competitive.
For DTC retail, recognizing and adapting to emerging trends is not just a growth strategy; it's a necessity for relevance and long-term success.
As consumers become more discerning and expectations rise, consumer brands must innovate to meet demands, create value, and deliver exceptional experiences. Identifying and integrating these trends into business operations can be the difference between leading the market and playing catch-up.
This blog explores the significant DTC trends currently shaping the eCommerce sector and provides insight into how retailers can and should adapt.
Let’s dive into the first of eight distinct DTC retail trends.
The drive towards more tailored shopping experiences reflects a deeper understanding of customer needs and behaviors facilitated by advanced technologies and data analytics.
Brands that excel in offering personalized, customer-centric experiences are more likely to build lasting relationships, foster loyalty, and drive repeat business, setting themselves apart in the crowded eCommerce space.
AI and machine learning tools are making it easier than ever to analyze vast datasets to understand individual customer behaviors, preferences, and engagement patterns. Properly implementing analysis tools enables the delivery of personalized product recommendations that will resonate with customers.
Taking a page from the success of companies like Stitch Fix, DTC businesses can employ AI and machine learning to curate personalized subscription packages or services.
This model analyzes customer preferences, past purchases, and even social media activity to handpick items that align with individual tastes and needs.
By incorporating AI-powered strategies, brands can create a more personalized and engaging customer experience. Here are several examples where personalization works well.
The widespread use of smartphones and tablets for online shopping has coined a new term in an industry already cluttered with acronyms–mobile commerce (m-commerce). While it may sound gimmicky, this shift has prompted brands to refine their mobile strategies, ensuring they effectively capture and engage the mobile-centric consumer.
Creating a mobile-first shopping experience goes beyond responsive design; it's about crafting an environment that's intuitive, fast, and tailored to the on-the-go consumer.
Here’s what to prioritize:
Collaborating with social media influencers can significantly amplify a brand's presence and credibility on mobile platforms. Influencers can create relatable content that resonates with their followers, driving authentic engagement and directing traffic to mobile shopping platforms.
This strategy can introduce products to a target audience in a contextually relevant manner through genuine endorsements, encouraging followers to explore and purchase via mobile.
Many brands are developing exclusive offers and features for mobile users to incentive engagement.
Here’s how and why:
As voice-assisted devices like Alexa, Google Assistant, and Siri become more common in households, their use extends beyond basic queries to include shopping activities. People increasingly use these devices to ask about products, compare prices, and even make purchases directly through voice commands.
The adoption of Buy Now Pay Later (BNPL) and digital wallets reflects a broader shift towards more flexible, secure, and consumer-friendly payment options. To stay ahead, DTC brands must ensure their technology infrastructure supports various payment options and allows for the easy addition or modification of payment strategies as market demands change.
BNPL services have revolutionized the online shopping experience, allowing consumers to purchase products immediately and pay for them over time, often interest-free. This payment model has gained immense popularity due to its flexibility and affordability.
Here are some of the benefits for brands implementing BNPL:
Digital wallets, like Apple Pay, Google Wallet, and Samsung Pay, offer a secure and convenient way for consumers to store payment information and complete transactions quickly.
Enabling payments through digital wallets should be a priority. Here’s why:
DTC brands that combine subscription models with dynamic loyalty programs are poised to create compelling value propositions for their customers.
This will ultimately lead to increased customer lifetime value, enhanced brand loyalty, and a stronger competitive position in the eCommerce marketplace.
Subscription services have transformed consumers' interactions with brands, offering convenience and personalized experiences.
Here’s how they're evolving:
Loyalty programs that transcend traditional points and discounts offer a unique brand experience, fostering long-term customer engagement. For retailers implementing such programs, a system that accurately tracks loyalty points is crucial to ensure consistency and trust, especially during product returns.
Implementing tiered rewards structures incentivizes continued engagement, with higher tiers offering more exclusive benefits, such as early access to new products, special events, or personalized services.
Loyalty rewards are increasingly personalized, with offers and perks tailored to individual customer preferences and purchasing history. For example, a beauty brand might offer special rewards in product categories that customers frequently purchase.
Loyalty programs are evolving to include elements of community building and brand advocacy. Customers can earn rewards for leaving reviews, referring friends, or participating in brand-sponsored social initiatives, thus deepening their emotional connection with the brand.
The rise of omnichannel retailing and the demand for flexible fulfillment options are shaping how DTC brands meet consumer expectations for convenience, speed, and flexibility.
An Order Management System (OMS) is crucial in enabling these fulfillment models, acting as the backbone that supports the seamless integration of various sales and distribution channels.
BOPIS has become a consumer favorite, blending online shopping convenience with the immediacy of in-store pickup. An OMS orchestrates this by syncing online orders with physical inventory, ensuring products are reserved and ready for customer pickup promptly.
Brick-and-mortar store locations can double as fulfillment centers, shipping orders directly to customers. The ship-from-store model reduces shipping times and costs. An OMS manages this by determining which stores have the inventory to fulfill online orders efficiently, turning brick-and-mortar assets into valuable e-commerce resources.
To meet the demand for convenience and safety, curbside pickup allows customers to collect their purchases without entering the store. An OMS coordinates order preparation and customer notifications, ensuring a smooth and quick pickup process.
Speed is a critical factor in customer satisfaction. An OMS enables real-time inventory visibility and logistics coordination, facilitating rapid order processing and delivery to meet customer expectations for quick service.
BORIS allows customers who have made online purchases to return them at a physical store location. This model enhances customer convenience by providing a straightforward return process and immediate resolution.
An OMS better enables BORIS by tracking returns in real time, updating inventory levels accordingly, and processing refunds or exchanges efficiently. This improves the customer experience and also helps retailers manage returns more effectively, reintegrating returned products into the inventory system quickly to minimize loss.
DTC brands continue to carve out significant market share, driven by the expansion into new markets and leveraging online marketplaces as strategic channels for growth and lower customer acquisition costs.
The dynamic interplay between direct-to-consumer strategies and marketplace presence is key to broadening their reach, enhancing customer experiences, and achieving sustainable growth.
Here’s where expansion trends are most notable.
Many notable DTC companies are looking beyond their traditional customer bases and geographic boundaries, exploring new markets to tap into unmet demands and diversify their revenue streams.
Listing products on well-known marketplaces like Amazon, eBay, Facebook, and TikTok Shop can significantly boost visibility, attract a larger customer base, and drive sales. These channels are especially beneficial for newer brands looking to establish credibility and gain exposure quickly.
Marketplaces offer valuable data and insights that DTC brands can use to understand market trends, consumer behavior, and the competitive landscape. This information can inform product development, pricing strategies, and marketing campaigns.
To maximize the benefits of both direct and marketplace selling, DTC brands are adopting integrated strategies that leverage the strengths of each channel.
DTC brands are increasingly prioritizing sustainability in their sourcing strategies, opting for environmentally responsible materials and products.
The shift towards sustainability also extends to packaging and shipping, where brands find innovative ways to reduce waste and emissions.
Here’s a closer look.
Sustainability Practices |
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Sourcing Sustainable Materials |
Selection of renewable, recycled, or biodegradable materials for products and packaging to reduce environmental impact. |
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Ethical Supply Chains |
Collaboration with suppliers who practice sustainable and ethical production methods. |
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Minimalist Packaging |
Simplified packaging designs that use fewer materials, lowering shipping costs and carbon emissions. |
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Eco-friendly Shipping Options |
Providing options like consolidated shipping or carbon-neutral delivery to lessen logistics' environmental impact. |
An Order Management System (OMS) can be a powerful tool for implementing and managing sustainable practices effectively.
Composable commerce is about building a flexible and scalable tech stack that comprises best-in-class solutions, allowing brands to select and integrate the most suitable technologies for their specific needs.
The emphasis on customization and scalability enables brands to tailor their tech stack to fit their unique business model and scale components as they grow, ensuring that the technology evolves in tandem with the business.
Best of all, with the right tech in place, brands can quickly adopt new technologies and adapt to emerging trends without overhauling their entire systems. This flexibility is crucial in responding to market dynamics, consumer behavior shifts, and competitive pressures.
An Order Management System (OMS) is a cornerstone in the composable commerce ecosystem. It provides the necessary infrastructure to streamline operations and enhance customer experiences.
An OMS acts as the nerve center in a composable commerce architecture, centralizing order processing, inventory management, and fulfillment across various channels and touchpoints, thus ensuring consistency and efficiency.
The strength of an OMS in a composable commerce setup lies in its ability to integrate seamlessly with other systems, whether it's eCommerce platforms, CRM tools, payment gateways, loyalty programs, deferred payment programs, or shipping and logistics solutions. This interoperability allows for a cohesive and unified tech stack that drives operational excellence.
Instead of investing in monolithic systems that may become quickly outdated, composable commerce enables brands to invest in specific areas that need enhancement or upgrading, saving time and resources while staying on the cutting edge.
Whether embracing AI-driven personalization, tapping into mobile commerce innovations, or adopting sustainable practices, a composable commerce approach allows DTC brands to quickly integrate new functionalities and stay ahead of consumer trends.
Deck Commerce is the only Order Management System specifically crafted specifically for DTC brands, boasting over 60 integrations with leading commerce vendors. By leveraging Deck Commerce, brands can adeptly navigate the ever-evolving DTC landscape, staying ahead of trends and adapting to the dynamic market shifts anticipated this year.
Ready to enhance your brand's efficiency and market presence? Discover how Deck Commerce can streamline your operations and support your growth. Contact us to learn more about leveraging our OMS for your business success.