Thursday, March 21

The 5 things in DTC you need to know today

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🚨 In today’s newsletter 🚨

  • Cracking the D2C Pricing Code

  • D2C Brands: Time to Think Like Amazon

  • 5 SEO Strategies for eCommerce Success in 2024

  • Let’s get into it👇

#1 - Cracking the D2C Pricing Code

The Scoop: Intelligems analyzed data from over 1,000 price tests across 300+ online stores. The key findings? Higher prices often don't scare away customers, using .95 in prices still delivers, and offering free shipping isn't always a win for profits.

Why Customers Care: Price tags carry major weight when it comes to deciding what to put in the cart. By dialing in your prices and shipping rates, you can find that sweet spot that keeps both your customers and your bottom line happy.

Tricks to Try:

  • Test out bumping up your prices and see how shoppers react

  • Play around with prices ending in .95 vs. nice round numbers

  • Tinker with free shipping minimums until you hit the profit jackpot

  • Mix and match products in bundles or multi-packs at tempting prices

  • Reward your regulars with built-in discounts on subscription orders

Keep Tabs On:

  • Purchase Price Variance (PPV): The % change in your average order price

  • Conversion Rate: The % of window shoppers who take the plunge

  • Gross Profit Margin: The cut of total sales you get to keep as profit

Crystal Ball Says: More D2C brands will jump on the price testing bandwagon to max out margins and conversions. Fancy AI tools will do the testing dirty work and ID the perfect prices for different customer groups in real-time.

Hot Take: Don't assume you know your customers' price limits - let the data guide you and watch your profits soar. Think beyond the sticker price to shipping costs, product bundles, and more. Pricing is both an art and a science, so blend test results with your brand vibe for the ultimate formula.

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#3 - D2C Brands: Time to Think Like Amazon

The Scoop: Grove Collaborative's CEO says D2C brands must expand product offerings across categories to compete with giants like Amazon. Specializing in a single niche isn't enough anymore.

Know Your Customer: D2C shoppers crave convenience and a trusted brand for more of their daily needs. They struggle when having to search for reliable options across different categories. D2C companies that become a one-stop-shop can boost loyalty.

Action Items for Brands:

  • Expand into complementary product categories

  • Partner with synergistic D2C brands for unique bundles/promos

  • Offer flexible buying options (individual purchases & subscriptions)

  • Create a compelling loyalty program with VIP perks

  • Build trust through an authentic brand story at every touchpoint

What to Track:

  • Customer lifetime value & multi-category buyer percentage

  • Subscription sign-ups, retention rates & revenue per subscriber

  • Perceived convenience & desire to consolidate purchases

Crystal Ball Says: Expect more D2C brands to evolve into lifestyle destinations serving a broader range of consumer needs. Trust will be the key differentiator in a crowded D2C landscape.

Food for Thought: Many D2C brands pride themselves on specialization, but that limits growth. The next wave of D2C winners will be bold enough to venture beyond their comfort zone and become indispensable to customers' lives. Start planning that expansion before the bandwagon fills up.

DTC Daily’s Monthly Spotlight:

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#4 - Things Worth Checking Out

GLOBAL - Worldwide ecommerce sales to break $6 trillion, make up a fifth of total retail sales

STUDY - 70% of SEA Gen Zs rely on eCommerce for purchase research

MARKETING - 6 ways to get more customers to your online store

STOCK - Missed out on Shopify stock? Buy Global-e stock instead

AI - Top AI SEO tools to automate your organic performance in 2024

#5 - 5 SEO Strategies for eCommerce Success in 2024

The Scoop: In the crowded e-commerce space, powerful SEO strategies are key for DTC brands to drive organic traffic, boost visibility, and increase sales. This Forbes article shares five essential SEO tips to help e-commerce businesses succeed in 2024.

Connecting with Your Audience: By optimizing websites for search engines, DTC brands can attract potential customers actively searching for their products. Focusing on product-related keywords with clear purchase intent helps brands connect with shoppers at the right moment.

Opportunities for Brands:

  • Conduct keyword research to identify product-specific terms that match customer needs and search behaviors

  • Increase content production by publishing high-quality, relevant content to boost authority and trust

  • Optimize product pages with compelling descriptions, visuals, reviews, and clear CTAs

  • Enhance category pages with intuitive navigation, filters, and relevant keywords

  • Build high-quality backlinks from reputable websites to improve search rankings and domain authority

Measuring Success:

  • Track organic traffic growth, keyword rankings, and conversion rates to assess SEO impact

  • Monitor engagement metrics like time on page and bounce rate to evaluate user experience

What's Next: DTC brands that prioritize user experience, mobile-friendliness, and quality content will stay competitive. Those leveraging voice search optimization and AI-powered content will be primed for future success.

Our Take: While SEO drives organic traffic, DTC brands should also focus on building a strong brand identity and customer loyalty. Combining SEO best practices with excellent customer service, personalized experiences, and innovative products creates a sustainable competitive edge beyond search rankings.

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