66% of North American ecommerce organizations have increased their investment in Direct-to-Consumer

Two-thirds of North American organizations (66%) across ecommerce, manufacturing, retail, transport and logistics supply chain, and wholesale businesses in North America say their investment in the Direct-to-Consumer (DTC) delivery model has increased since early 2020, with 35% saying it has increased significantly.

By increasing their investment in DTC channels, 38% of organizations believe they can improve profit margins, and 31% are looking to reduce costs. Almost a quarter (23%) of respondents indicate the ability to personalize the service offering as a key driver.

That’s according to a Direct-to-Consumer report commissioned by Deposco, a leading provider of omnichannel supply chain fulfillment solutions, polling decision-makers across the US and Canada, which points to a dynamic, fast-growing DTC sector.

However, the research also highlights that organizations are facing a range of barriers related to people and technology when it comes to achieving the DTC success they aspire to. These include, in the former category, lack of skilled staff, highlighted by nearly a quarter (24%) of the survey sample and culture of the company (17%), and in the latter, physical infrastructure (23%) and difficulties identifying the right inventory for DTC (14%).

The latest technology is key in helping businesses protect themselves from failing to fulfill customer expectations when operating DTC.

This research highlights that many organizations are now considering their whole range through DTC, if not their whole range, then certainly their complete categories of products. Organizations must ensure that they are investing both in technology and people to support them in ensuring that their systems and processes work at optimum efficiency levels. Part of the key to this will also be ensuring that the right level of investment is put behind order management and fulfillment.

Over half (54%) of respondents mentioned that organizations should ensure they are operationally ready with people, process and technology, while 29% recommend to ensure they have a robust order management and fulfilment process in place.