Selling direct is the e-commerce wave of the future.

• Shoppers like it when brands interact directly with them – personal connections typically lead to higher sales. 
• For sellers, dealing directly with their customers allows them to save money, since there’s no middleman, and maintain control. 
• More and more big brands are going direct, including:
  • Tesla, which bypasses traditional car dealerships; 
  • HP, which allows customers to select and customize their computers via the company’s online store; and 
  • Nike, which is two years into a big shift toward direct-to-consumer. In June 2022, the sportswear giant reported that direct revenues grew 11%*. Nike EVP and CFO Matt Friend said, “Two years into executing our Consumer Direct Acceleration, we are better positioned than ever to drive long-term growth while serving consumers directly at scale.”

Selling direct really came of age with the internet. Before the World Wide Web, few manufacturers or distributors sold directly to consumers. In fact, those consumers who tried to buy direct were nudged toward retailers. The only exceptions were TV infomercials – remember K-Tel? – and occasional newspaper campaigns, but these amounted to a small fraction of overall product sales, the vast majority of which were conducted at brick-and-mortar retail stores.

The emergence of online shipping gave consumers the chance to go shopping without leaving their homes. Shoppers like it when brands interact directly with them – personal connections typically lead to higher sales.   With direct buying, shoppers also get direct access to the most accurate information and support, are easily able to manage returns and other customer service issues, and don’t have to worry about being swindled by a knock-off distributor.

For sellers, dealing directly with their customers is a great way to cut costs and maintain control, since an intermediary, or middle man, is no longer necessary. That’s why more and more big brands are going direct, including Tesla, which bypasses traditional car dealerships; HP, which allows customers to select and customize their computers via the company’s online store; and Nike is two years into a big shift toward direct-to-consumer. In June 2022, the sportswear giant reported that direct revenues grew 11%, led by a 25% spike in EMEA¹⁰. In a statement, Nike EVP and CFO Matt Friend said, “Two years into executing our Consumer Direct Acceleration, we are better positioned than ever to drive long-term growth while serving consumers directly at scale.”

*Abdulla, H. (2022, June 28). Direct-to-consumer continues to serve Nike well say experts. Just Style.