Wednesday, February 21

The 5 things in DTC you need to know today

February 21, 2024

🗣 Looking for more qualified leads? Reach 24,000 DTC Brands

🚨 In today’s newsletter 🚨

  • Amazon's Launchpad Supports D2C Brands

  • D2C Brands Seek Cost Savings Through Outsourced Perishable Goods Fulfillment

  • Retail's Extreme Makeover: Innovate or Evaporate

Let’s get into it👇

AMAZON
#1 - Amazon's Launchpad Supports D2C Brands

The Rundown: Amazon India's Launchpad program provides guidance and support to help direct-to-consumer (D2C) brands and startups successfully sell and scale on Amazon's marketplace.

The details:

  • Over 650 emerging brands showcase over 200,000 unique products across 30 categories

  • Brands like Mamaearth, The Man Company gained popularity via Launchpad

  • During the Great Indian Festival, Launchpad created about 100 millionaire sellers

  • Brands get support on marketing, distribution, daily sales metrics updates to optimize growth

  • Featured brands saw 1.5-10x boosts in revenue and reach within months of joining

Why it matters: Launchpad allows small D2C brands to tap into Amazon's global scale and visibility. For young brands facing challenges in standing out among larger players, it provides a launchpad to rapidly find and access customers. Its comprehensive guidance and selling support helps brands prosper in a competitive landscape. Ultimately, Launchpad fosters entrepreneurship by enabling the next generation of consumer brands.

What D2C Brands Can Learn:

  • Leverage Amazon's marketplace and programs like Launchpad to scale faster

  • Optimize online product listings and search ranking for greater visibility

  • Use data-driven insights to regularly improve marketing and operations

  • Build capabilities early on for digital commerce and online selling

  • Focus on product innovation while relying on Amazon for the rest

  • Customer access and reviews on Amazon build credibility for young brands

ZAYMO
#2 - Gozney Increased Sales 27% by Introducing Shopping in the Inbox

You heard that right… shopping in the inbox itself. Mic drop. Check out how it works with Zaymo:

Why Zaymo Stands Out:

Less friction = sales: Let consumers build their cart right in the email

Less friction = more data: Triple your reviews collected via email

Keep your Klaviyo account: Zaymo plugs into your existing software stack

Backed by YCombinator, Zaymo is at the forefront of retention marketing innovation. Join Gozney and dozens of other brands pushing the boundaries of emails.

Read more (3 minute story) or book a demo

SALES
#3 - D2C Brands Seek Cost Savings Through Outsourced Perishable Goods Fulfillment

The Rundown: Direct-to-consumer (D2C) brands built large fulfillment operations during pandemic boom times but are now looking to cut costs by outsourcing shipping and warehousing.

Key Details:

  1. D2C brands scaled up fulfillment capacity quickly when COVID-19 restricted shopping options.

  2. High fulfillment expenses like warehouses and labor are now seen as too costly as growth slows.

  3. Companies like Misfits Market provide plug-and-play perishable fulfillment services to replace excess in-house operations.

  4. Outsourced fulfillment reduces overhead for D2C brands while leveraging specialized provider expertise.

  5. Data-driven inventory management via AI also helps improve efficiency, reduce waste and enhance accuracy.

Actionable Takeaway: As the economy cools, D2C brands can cut costs by outsourcing fulfillment to optimized third-party services specialized in perishable goods.

DTC Daily’s Monthly Spotlight:

Tools and Services

Need a Graphic Designer? Cost effective solution, instead of full-time employee: Delesign 

Get a Metal Business Card: My Metal Business Card

Use influencers to create UGC for your brand: minisocial


🗣 Have an upcoming event or tools you’d like to recommend to 24,000 DTC Brands? Click Here

RESOURCES
#4 - Things Worth Checking Out

AI - How DTC retail is finding new life with the help of AI

SOCIAL MEDIA - Why DTC brands aren’t swayed by cheaper social media ads

SHOPIFY - Shopify ‘Audiences’ is boosting cookieless ads

NEWS - Mexico’s Antitrust Regulator Says eCommerce Market Needs ‘Corrective Measures’

STOCK - Instacart's laid off "low performers" lament disappointing stock situation

RETAIL
#5 - Retail's Extreme Makeover: Innovate or Evaporate

The Rundown: Shopper expectations for unforgettable, tailored experiences are skyrocketing, pushing many retailers toward vanishing point.

The details:

  • Customer loyalty now depends more on standout experiences than maximizing sales transactions. Failure to shift focus threatens to undermine retail brands with increasing speed.

  • Innovators like Otto and Thomann are rewriting the rules of engagement, using live streams and passionate expert advice to create interactive connections.

  • The bar continues being raised on convenience and sustainability. Ultra-fast delivery or robust refurbished product offerings are becoming the basic experience consumers expect.

  • Many retailers still cling to outdated, transaction-focused mentalities. This widening gap puts them at growing risk of abrupt obsolescence in the eyes of experience-driven consumers.

  • Legacy systems and attitudes compound inertia against changing course. But delayed moves to meet consumer expectations could prove too little, too late.

Why it matters: Shopper demands for remarkable, customized experiences are skyrocketing. Brands unable to rapidly reinvent engagement and convenience face evaporation over the precipice.

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