The direct-to-consumer strategy is making a run at Amazon’s throne

ronjor · Nov 29, 2019

Deirdre Bosa@dee_bosa Laura Batchelor Nov 29 2019

Direct-to-consumer (DTC) brands are making a run at Amazon’s ecommerce dominance thanks in part to a growing ecosystem of companies.
Startups like Shipbop, Affirm and Returnly are working with some of the most popular DTC brands
The DTC ecosystem could appeal to brands wary of giving up sensitive information to Amazon, a potential competitor.
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Within the past year, according to brand PR firm Diffusion, 2 out of every 5 Americans made a purchase directly from the brand or manufacturer, bypassing middlemen like Walmart or Amazon in the process.
Still, this mode of discretionary spending is on the rise in conjunction with the raw number of DTC options.

It's not just other major brands that might soon mull making their own way that could prove disruptive, though. It's the hundreds of DTC brands never affiliated with Amazon in the first place that are still finding their way.
Look for an unexpected acceleration
It's not an existential threat to Amazon, to be clear. Diffusion's survey indicates that direct-to-consumer shopping will grow 20% over the course of the next five years...not exactly a show stopper given that less than 10% of the nation's retail industry is now driven by DTC shopping.

The tepid growth estimate for DTC, however, may be rooted in a history that ignores how much direct-to-consumer brands have figured out in just the past few months and perhaps during 2019's busy shopping season in particular.
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