Manufacturers and D2C Marketplace Selling: 9 Stats That Will Validate Your Strategy

26 March, 2019

Uncategorized By Laura Lane

An increasing number of manufacturing brands are turning to D2C selling on e-commerce marketplaces. And as we learned recently, some Amazon vendors are transitioning to direct-to-consumer sales as a matter of necessity.

But others are doing it for the sheer opportunity it presents. In addition to unlocking a treasure trove of consumer and product data, third-party selling accounts are a way for manufacturers to gain greater control over the customer experience, product pricing, distribution channels and more.

We recently covered the subject of D2C marketplace sales to help manufacturers determine if, when and how to make this transition:

Experimenting with direct-to-consumer sales on marketplaces is a smart strategy for most brands, since you never know when specific wholesale relationships will disappear. Testing the waters through marketing, selling and fulfilling efforts will give you a quick indication of where you might need to invest in your company.

But if you still need convincing, here are nine important stats impacting manufacturers today.

A growing number of consumers want to connect with manufacturing brands

  • 55% of consumers prefer to buy directly from brands rather than multi-brand retailers
  • 78% of shoppers trust manufacturers when researching products — over social media, news sites and even experts
  • 40% of consumers expect that more than 40% of their spending will go toward direct-to-consumer brands in the next five years
  • 82% of consumers are loyal to brands, and 62% are willing to spend more for a customised shopping experience

They prefer the personalised experiences only manufacturers can provide

  • 57% of consumers are heavily influenced by personal experiences and communication from brands themselves — far more than the 16% who say brand reputation alone is what inspires them to buy
  • More than half of consumers opt to visit brand websites (rather than retailer websites) because they offer more comprehensive information and guides

And they go to marketplaces to find them

  • 54% of shoppers start their product searches on Amazon, compared with 46% on Google
  • Amazon is now the fifth biggest retailer in the UK accounting for £4 in every £100 spent in retail in the UK last year
  • EBay boasts 179 million active buyers worldwide, with 60% of eBay’s revenue coming from international sites
  • Sales growth is occurring across a wide range of categories — apparel, auto parts, home goods, office supplies, toys, healthcare and many more — and is expected to jump another 14.8% industrywide

What this means for your manufacturing company

The question to ask is: How does your own sales growth compare to that of the industry at large? Is it on pace with your competitors’? Or do you have some catching up to do?

If you’re not on track for similar growth goals, focusing on direct-to-consumer marketplaces as part of your go-to market strategy can be a great way to get ahead.

Looking for more information on selling D2C on marketplaces? Download your free copy of our eBook: The Manufacturer’s Guide to Marketplace Selling. You’ll find best practices and industry insights based on ChannelAdvisor’s experiences with more than 2,800 sellers across 100+ marketplaces.

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