{"id":12726,"date":"2022-08-11T10:00:00","date_gmt":"2022-08-11T09:00:00","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=12726"},"modified":"2022-08-04T16:29:50","modified_gmt":"2022-08-04T15:29:50","slug":"distributors-relevant-direct-to-consumer","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/distributors-relevant-direct-to-consumer\/","title":{"rendered":"How distributors can remain relevant in a direct-to-consumer world"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/technology-innovation\/\" class=\"entry-header__link\">Technology &amp; Innovation<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tHow distributors can remain relevant in a direct-to-consumer world\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2022-08-11T10:00:00+01:00\">11 August, 2022<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"How distributors can remain relevant in a direct-to-consumer world\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/distributors-relevant-direct-to-consumer\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/asavinwattanajantra\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin-350x350.jpg\" class=\"entry-author__image\" alt=\"Asavin\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin-350x350.jpg 350w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin-768x768.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin-810x810.jpg 810w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin.jpg 1000w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">Asavin Wattanajantra<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">Tesla Motors. Inc has evolved from car manufacturer to technology company with its inspired direct-to-consumer approach (DTC).<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">Customers can order the luxury electric cars through their phones or from Tesla-owned showrooms, cutting out the franchised dealerships that other automobile companies use.\u00a0 <\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">That means better customer experience, no costly dealer mark-ups, and product, service and brand standards are controlled in-house. <\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">What\u2019s not to like?\u00a0<\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">As a <a href=\"https:\/\/www.sage.com\/en-gb\/sage-business-cloud\/sage-x3\/industry\/distribution\/\">wholesale distributor<\/a>, that\u2019s not exactly music to your ears.\u00a0\u00a0<\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">Traditionally, your bread and butter is working with manufacturers in the supply chain, managing logistics, warehousing and sales, to sell to retailers in bulk.&nbsp;<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">But in recent times, a network of distributors is no longer the simplest and most straightforward way for manufacturers to get their products to customers. <\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">Manufacturers and brands such as Tesla are using DTC business models instead, in the pursuit of bigger margins, more efficiency, and better customer service.\u00a0\u00a0<\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">This is actually, an opportunity for distributors: to modernise your processes and become a more exciting proposition to customers in your own right.\u00a0\u00a0<\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">From personalised, omnichannel customer offerings to value-added services, here&#8217;s a list of things you need to do to be a valued partner in this new DTC landscape.\u00a0<\/span><\/p>\n\n\n\n<p class=\"\">Here&#8217;s what we cover in this article:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><span data-contrast=\"none\"><a href=\"#improve\">Improve your customer experience<\/a><\/span><\/li><li><span data-contrast=\"none\"><a href=\"#add\">Add more value through services<\/a><\/span><\/li><li><span data-contrast=\"none\"><a href=\"#take\">Take advantage of customer data with the right infrastructure<\/a><\/span><\/li><li><span data-contrast=\"none\"><a href=\"#finally\">Finally, get people on board<\/a><\/span><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"improve\"><span data-contrast=\"none\">Improve your customer experience<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:40,&quot;335559739&quot;:0,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/h2>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">Implement an effective e-commerce presence and seamless customer experience, just like an online retailer would do. <\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">Customers no longer expect (or want) sales calls, meetings and other types of offline transaction. <\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">They want to find what they want quickly. <\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">Give them the tools to research and purchase from your inventory at pace.\u00a0<\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">Through selling directly to customers, you can capture and analyse their data. This immediately puts you in an excellent position to meet the modern demand for a more tailored and personalised experience. <\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">What are your best and worst sellers? <\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">Who is your best recurring customer? <\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">What are their sales buying habits? <\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">Already, you are learning about what inventory to restock or edit away, and how to give customers what they want more or less of.\u00a0\u00a0<\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">Make sure you promote your service as directly linked to the behind-the-scenes and real-time distribution information that may give an improved customer support and service function. <\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">Ensure the chain of communication is short, so it&#8217;s easier to handle service delays and returns.<\/span><\/p>\n\n\n\n<p class=\"\">A<span data-contrast=\"auto\">nd make sure  your approach is customer friendly.\u00a0<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"add\"><span data-contrast=\"none\">Add more value through services<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:40,&quot;335559739&quot;:0,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/h2>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">Based on the strength of your customer experience, customers will want to work with you again and again. <\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">The power of your brand will depend more on above-and-beyond customer care and service.\u00a0<\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">You may already offer simple value-added services such as product selection, picking, packing and shipping. <\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">However, digital transformation offers you ways to differentiate your business from the competition by providing services that add value and which you can charge extra for such as:\u00a0<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><span data-contrast=\"auto\"> Product installation and component assembly<\/span><\/li><li><span data-contrast=\"auto\"> Product customisation<\/span><\/li><li><span data-contrast=\"auto\"> Field service, maintenance and quality inspection<\/span><\/li><li><span data-contrast=\"auto\"> In-house repair<\/span><\/li><li><span data-contrast=\"auto\"> Just-in-time delivery<\/span><\/li><li><span data-contrast=\"auto\"> Consulting<\/span><\/li><li><span data-contrast=\"auto\"> Training and education<\/span>.<\/li><\/ul>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">Although there will be an understandable focus on e-commerce, it&#8217;s essential to note that there are other ways you can reach customers, which means you need an omnichannel mindset across all the touchpoints you have with them.\u00a0<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"take\"><span data-contrast=\"none\">Take advantage of customer data with the right infrastructure<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:40,&quot;335559739&quot;:0,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/h2>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">Moving towards a DTC strategy means you need to scale your operation to support these additional responsibilities. <\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">It may be necessary to update your data and analytics software to centralise your information so you can manage end-to-end distribution processes effectively.\u00a0\u00a0<\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">With effective software, predictive sales and accuracy patterns help plan when you need to build up inventory or scale down and run on less inventory, depending on demand. <\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">You can make commitments or allocations based on supply since you know where and when inventory will be available.\u00a0<\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">Better product knowledge and analysis of customer data will give market insights that help you answer questions such as:\u00a0<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">What products sell and don\u2019t sell in which markets?<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li><li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Which international markets should you focus your attention?<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li><li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Which customers should you focus on to make the best profits?<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li><li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"auto\">How are the interests and needs of your customers evolving?<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true,&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"finally\"><span data-contrast=\"none\">Finally, get people on board<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559738&quot;:40,&quot;335559739&quot;:0,&quot;335559740&quot;:259}\">&nbsp;<\/span><\/h2>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">Going DTC is not merely a case of creating a fancy looking e-commerce website. <\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">Working to integrate direct-to-consumer processes may require considerable shifts in the way you work and stakeholder buy-in. <\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">It may require restructuring, additional investment, new staff, and new ways of working, alongside requirements for training.\u00a0<\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">Remember that managing a move towards DTC is likely to require a significant change in your business culture. <\/span><\/p>\n\n\n\n<p class=\"\"><span data-contrast=\"auto\">Setting up an e-commerce strategy may affect the sales arm of your business, and you&#8217;ll need the investment and safeguards in place to make sure your digital strategy wins the required return on investment.\u00a0\u00a0<\/span><\/p>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-b1a63862-3fa0-4a5e-bb67-c76b88bbc6b8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Discover how distributors can remain as valued partners to brands and manufacturers that are embracing the direct-to-consumer model.<\/p>\n","protected":false},"author":356,"featured_media":11747,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"footnotes":""},"categories":[11],"tags":[229,159,162],"business_type":[3],"lilypad":[],"context":[],"industry":[56,57],"persona":[71],"imagine_tag":[85,86,96,108],"coauthors":[351],"class_list":["post-12726","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology-innovation","tag-ecommerce","tag-midsized-business","tag-retail","business_type-medium-sized-business","industry-distribution","industry-ecommerce"],"sage_meta":{"region":"en-gb","author_name":"Asavin Wattanajantra","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1248347484.jpg","imagine_tags":{"85":"Distribution","86":"Ecommerce","96":"Medium businesses","108":"Retail"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice UK","distributor_original_site_url":"https:\/\/www.sage.com\/en-gb\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/12726","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/users\/356"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/comments?post=12726"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/12726\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media\/11747"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=12726"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/categories?post=12726"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=12726"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/business_type?post=12726"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/lilypad?post=12726"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/context?post=12726"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/industry?post=12726"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/persona?post=12726"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/imagine_tag?post=12726"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/coauthors?post=12726"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}