Direct-to-consumer (DTC)
Also known as: DTC, D2C
In short
A business model in which a brand sells its products directly to end customers instead of through an independent retailer or wholesaler.
Who sells to the customer
Direct-to-consumer selling puts the brand in charge of the customer transaction. Its own online store is a common channel. A brand can also sell directly through a physical store, while operating wholesale relationships elsewhere.
The distinction is the route to the buyer. An independent retailer selling many manufacturers’ products is an e-commerce merchant, but those transactions are not the manufacturers’ direct sales.
DTC gives a brand direct responsibility for pricing, customer communication and the purchase experience. It also brings operational work: attracting customers, handling orders and coordinating fulfillment and returns. Using a fulfillment partner does not automatically turn a direct sale into wholesale.
Illustrative example
Imagine a cookware manufacturer selling a pan through its own store and supplying the same pan to a department store. The purchase from the manufacturer’s website belongs to its DTC channel. The department store purchase belongs to its retail distribution channel.
Both offers may refer to the same product identifier. Their prices, availability and delivery promises still belong to separate sellers.
Avoid a false performance shortcut
DTC describes a distribution model, not a guarantee of higher profit. Removing an intermediary also changes which acquisition and service costs the brand carries. Compare channel economics on a consistent basis and maintain accurate product information for each offer.