How D2C is revolutionizing Direct Selling
When Amway and Golden Products launched Direct Selling and Multilevel Marketing in the 1960s it was a revolution in its own way. Customers could enjoy testing great products in the Comfort of their Homes and Direct Sellers could start their own risk-free Home-based Businesses. The Direct Selling Industry has come a long way with tremendous Success.
In 2015 108 million Direct sellers produced a 183 billion Dollar Turnover worldwide.
From then, we see slowed down the growth of only 2% in 6 years resulting in 128 Million Direct Sellers producing 186 billion Dollars in 2021.
This sad development raises important questions, the Direct Selling Industry must be able to answer to first survive and then hopefully strive again!
#1. What happened to the Direct Sales Industry in the last few years?
#2. Where did all the Growth and Volume go?
#3. What is the outlook and possible solution to get the Volume & Growth back?
It’s easy. The Internet happened.
Direct selling today is not limited anymore to the candle-selling party in somebody’s living room. Customers buy directly from millions of private sellers and small private shops established on the Internet. Here you find Millions of successful New Gen Direct sellers using modern tools to make their worldwide Customers happy.
Amazon 3rd Party sellers are small Shop-owners using the Amazon platform to sell directly
to the End-Customers. Their Sales went from 16 billion in 2015 to 103 billion in 2021 +543% Growth in 6 years. *
Etsy 3rd Party sellers sell home-produced & handcrafted Art, Furniture, and Jewelry using the Etsy Platform to sell directly to End-Customers. Sales went from 2.2 billion $ in 2015 to 13.4 billion $ in 2021 + 504% Growth in 6 years. *
eBay 3rd Party sellers sell all kinds of products privately and directly to the End customers.
Sales went from 8.5 billion in 2015 to 39.2 billion in 2021 + 361% Growth in 6 Years. *
Shopify 3rd party sellers sell all kinds of products mainly through social media ( YouTube; Tik Tok, Facebook & Instagram ) Platform Sales ( GMV ) went from 7.7 Billion in 2015 to 135 Billion in 2021 + 1653% Growth in 6 years.*
Pinduoduo started selling food direct to End Customers, now millions of 3rd Party sellers sell all kinds of products through Social Commerce Group Shopping (shop together & save up to 70% of the price ). Platform Sales went from 1 Billion $ in 2016 to 255 Billion $ in 2020 + 25.400% Growth in 5 years.
Source Statista, market pulse, Shopify, pinduoduo.
The Big Question is:
Is the Rise of new D2C (Direct 2 Customer = online direct selling) the Gravestone of traditional Direct sales leading it slowly but surely to its Cemetery and Extinction or can D2C revive classic Direct selling and inspire a new generation of Direct Selling Companies to benefit from worldwide trends and come back to double-digit growth per year?
Trends that fuel the D2C industry and could help the Direct Selling Industry come back to the path of Growth and Success if adapted correctly.
#1 Customers love to shop online & directly from their homes.
#2 Customers love to connect with friends before making a shopping decision.
#3 Customers will recommend a product or service when they love it and see a benefit.
#4 Customers compare prices before making a buying decision, pricing and delivery cost are key decision makers.
The Companies that take these trends into account can achieve tremendous Success; a new generation of Direct Sales Companies is needed.
The Time of Home parties are over, the new playground is online.
It’s fast-changing, it’s challenging but it’s rewarding beyond imagination.
Are you ready for the Future?