A large brand that has been successfully sold around the world for many years will probably have a home site and an independent sales network, exclusive or not, since there is considerable prestige and of course other benefits in the operation of such an array. However, not every new brand can immediately afford the "whole package" in terms of building the brand and its independent sales array, which draws many business owners towards the alternative option of making a "private label" in a process where most or all of their sales are made through a website or platform Range.
Confused between the options and do not know what will be the optimal solution for promoting and developing your online sales system on the road to success? Here is everything you need to know about the possibility of selling directly to the customer in front of a sale in the "Private Label" configuration through an external party:
Direct Selling to Customer (DTC) – Pros and Cons
Selling a particular product through the relevant brand's homepage is a way that seems natural, as stated mainly for certain reasons of the brand's prestige and perception in the eyes of its customers, but it is therefore not the simplest and certainly not the cheapest, which of course makes it problematic for novice business owners. Do not have a sufficient sales turnover that can allow them to "play" with a larger budget.
Direct online sales to the customer in the DTC model (Directly To Costumer) are made in one of the digital assets of the company that markets the product, usually as stated on its home page but sometimes also through other assets such as social media pages that do not charge for sales.
The benefits of direct sales to the customer in this model start first with full control over the "sales chain", which allows cheaper pricing, prevents unnecessary delays that depend on external factors and of course increases the profit margin for each product sold as no other party shares.
On the other hand, the disadvantages of the method start with the significant investment that a new brand needs to make in order to establish an independent sales platform that will not go through a range factor. In addition to this investment, which is not really suitable for every new business owner who starts with limited equity, such a platform operation also involves considerable maintenance in the long run, so those trying to save costs should think twice before starting to sell independently.
Selling "Private Label" through a range factor – advantages and disadvantages
The term "private label" is used in many and varied configurations, here referring to the sale through a range factor that allows to save all the headache involved in the previous method. In this configuration, which is very common among start-up business owners, the sales of the product are made through a dedicated sales site or a similar range factor, which of course takes a share of each sale but at the same time allows the same sale in the first place.
The main advantage of this sales method lies in the advertising and relative marketing that each product sold through an external party, which is another factor with an interest in promoting sales to all sellers on the platform, while also important to note that in some cases some shipping costs Falls on the external site and not on the seller himself.
The main disadvantage of this method lies, of course, in the fact that it is a factor that should be shared with the profit, one that can even delay the receipt of profits at any time of payment and in general, while a "partner" that not everyone wants in his business. Anyone who can afford to choose one way or another, should think twice before choosing the important choice of what type of brand he wants to be.