US DTC e-commerce market to reach $150 billion in 2022

According to eMarketer's forecast, US direct-to-consumer (DTC) e-commerce sales will reach $151.2 billion in 2022, a 16.9% increase compared to this year. In the coming year, although DTC purchases will only account for 2.5% of total retail sales, these brands will successfully subvert the traditional retail industry through diversified consumer experiences .

Pure DTC companies attract consumers through intentional marketing. For DTC companies , customer acquisition costs can also be high , but the DTC model can provide companies with marketing control over each product .

Shane Pittson, Quip’s vice president of growth, told eMarketer that as a DTC company , the oral hygiene supplier can gain better “data and insights” in conversations with retailers to position itself for successful product launches .

It is understood that providing customers with unique, high-quality products is the ultimate goal of every DTC company . As products are provided directly to customers, each DTC faces the challenge of convincing customers that what it offers is something that consumers cannot find elsewhere.

For Ricky Joshi, co-founder and chief strategy officer of mattress company Saatva, that means avoiding the bells and whistles surrounding typical DTC brands and instead “ staying true to the value proposition and the philosophy that the company was started with.”

At the same time, like every e-commerce company, DTC faces the challenge of converting likes into actual purchases . How to improve the ability to convert "add to cart" into " consumer checkout " ? The strategy to drive consumers to open their wallets is different for each DTC .

Kate MacCabe, vice president of product at Brooklinen, told eMarketer that the bedding company has actually benefited from its DTC brand , simplifying the path to purchase in the process. For other DTCs , improving conversion rates may require partnerships with companies like Shopify.

Beyond that, to remain competitive, DTCs must diversify the consumer experience and evolve with customer needs, rather than just selling fixed products on a website. For many DTCs , this means moving beyond the pure DTC model and partnering with external resources in the spirit of growth.

For example, shoe brand Allbirds and eyewear purveyor Warby Parker have physical stores that bring customers offline. Quip partners with existing brick-and-mortar stores, such as Target, to sell its products.

Meanwhile, many DTC companies have expanded beyond their initial hit products . Allbirds now sells apparel , while Harry’s , a company that primarily sells men’s razors , also offers deodorant . This reflects the shift in these brands’ models while still sticking to their value propositions .

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