Simple definitions for overcomplicated terms.
Definition
What is D2C? The Direct-to-Consumer Definition
Dec 18, 2025
The Definition
D2C (or DTC) stands for Direct-to-Consumer. It is a business model where a manufacturer or brand sells its products directly to the end customer, bypassing third-party retailers, wholesalers, or distributors.
In the old days, if you made running shoes, you had to beg a department store to stock them. In the D2C model, you build a website and sell those shoes directly to the jogger. You own the inventory, you own the transaction, and most importantly, you own the relationship.
In Plain English (No Jargon Allowed)
Economists call this "disintermediation." We prefer to call it "telling the middleman to take a hike."
Think of it like this:
Traditional Retail: You grow apples. You sell them to a grocery store for $0.50. The store sells them to a customer for $2.00. You make less money, and you have no idea who ate your apple.
D2C: You set up a farm stand by the road. You sell the apple for $2.00. You keep the full amount, and you get to ask the customer if they prefer Granny Smith or Red Delicious.
It’s higher risk because you have to find the customers yourself (hello, marketing budget), but it offers higher rewards in terms of profit margins and customer data.
D2C vs. Traditional Retail
Here is the breakdown of how D2C differs from the standard retail model:
Feature | Traditional Retail | Direct-to-Consumer (D2C) |
|---|---|---|
Sales Channel | Third-party stores (Walmart, Amazon, Sephora) | Brand-owned website or pop-up |
Customer Data | Owned by the retailer | Owned by the brand |
Profit Margin | Lower (wholesale pricing) | Higher (retail pricing) |
Brand Control | Limited (store controls display) | Total control over the experience |
The Reality Check: It’s Not All Sunshine
While keeping 100% of the revenue sounds fantastic, D2C comes with its own set of headaches. Since you don't have foot traffic from a big mall, you have to pay to acquire every single customer—usually through digital ads.
This is why many mature D2C brands eventually adopt a hybrid model. They start online to build a cult following, but eventually use outbound sales strategies to get their products onto physical shelves. Ironically, the most successful "Direct-to-Consumer" brands often end up needing a strong B2B sales motion to scale.