Unlock New Revenue Streams And Increased Customer Lifetime Value With A D2C Sales Strategy

By Jager Robinson | February 19, 2024

Executive Summary

As the eCommerce ecosystem evolves beyond traditional sales, brands need to explore new D2C sales strategies to unlock revenue, increase customer lifetime value, and increase brand awareness. With Logicbroker’s multi-vendor commerce platform, brands can launch or expand upon comprehensive dropship or curated marketplace storefronts that unlock an endless aisle of both first- and third-party products. With new tools and features that ensure a low internal lift and greater ROI than ever before, a D2C fulfillment strategy powered by Logicbroker is sure to drive revenue growth beyond a brand’s traditional operation.


Unlocking New Revenue Streams

We all have this notion that companies fit into neat buckets. The eBays of the world sell products from other companies. The Calvin Kleins of the world sell clothing through big box stores. However, major brands like Nike and Apple turned conventional thinking on its head by exploring ways to sell both their products and other accompanying products through their own website. As more customers expand their reach and commerce is increasingly done online, the reality and the expectations should change. 

For brands that sit on the fence of increasing customer value and struggling to find new ways to drive revenue, the clear choice is to either start a direct-to-consumer (D2C) online sales strategy or rapidly expand your existing D2C strategy. 

Omnichannel Customer Experience

For many brands, the supplier route is set in stone. Their orders from retailers are fulfilled and their end of the bargain is complete. Several years ago, before the “Cookie Wars” eliminated a brand’s ability to gather valuable first-party data, this transaction was more complete. Consumer trends were mapped via the retailer and new and innovative products always hit the shelves in time for the key year-round sales. 

But, it’s 2024. 

Brands must take control over their fulfillment strategy and explore new ways to drive revenue, expand customer lifetime value, and remain a household name for decades to come. Namely, through an omnichannel “all-encompassing” customer experience model that blends a brand’s owned inventory, supplier-focused fulfillment, and a D2C-focused sales strategy designed around meeting your customers wherever they shop, with the right products, at the right time, at the right price. 

The prime example of this trend is Samsung Electronics. Samsung, known for making everything from tape decks to refrigerators to TVs, has traditionally supplied Walmart, Target, and Amazon with thousands of consumer electronics to sell with new models out each year. 

Over the last five years, Samsung has explored a new way of thinking. Instead of relying solely on that stream of supplier business, they’ve expanded their own global D2C marketplace, right on Samsung.com. Their website is now a hub for a curated assortment of suppliers, from each region, to sell accompanying products. 

When customers want to buy a Samsung TV, they no longer have to wait for Walmart to get the latest brand (although that always should and will remain an option). Customers can visit their website and not only buy that TV but also purchase complementary products like a TV mount, game console, and more that will enhance their experience, drive loyalty toward Samsung’s well-curated selection of goods, and bring repeat customers back when the time comes for a new device. 

Creating A D2C Selling Environment

This new D2C-focused sales strategy spawns from the reality that major appliances have a (sometimes) lengthy replacement cycle. While we all may complain about our TVs going out of date in just a few years, the reality is your new Samsung QLED TV could last upward of 10 years, leaving Samsung in a unique position of having to drive new revenue that cannot be tied to their core products. This goes doubly for even longer lifecycle products like washing machines, dishwashers, and even HVAC equipment. 

The key to unlocking new revenue for major brands has been leveraging organizations like Logicbroker for their network, platform, and ecosystem to develop unique dropship and marketplace programs that capitalize on delivering more frequently bought products. Or, simply showcasing additional products that the brand sells through cross-sell promotions with major retailers, new product campaigns, or co-sell promotions with other major brands that are tied to those products.

The perfect example of this is from MRCOOL and Ingram’s Water and Air. These two sister organizations leverage Logicbroker to sell their HVAC equipment across the country. HVAC is not something that families typically think about. A traditionally B2B-focused suite of products, HVAC equipment would be sold to distributors across the country and installed by experts in the field. Nowadays, Ingram’s (and their suite of MRCOOL products) are changing the game through their online marketplace. 

Consumers can not only buy full DIY HVAC sets to install themselves but also can buy every accompanying piece of equipment needed for the care and maintenance of their systems that could last upward of 30 years. Ingram’s didn’t worry about their core product being on such a long replacement lifecycle. They tackled the problem through a D2C selling environment that is now poised to offer even more add-ons like extended warranties, on-site support, same-day deliveries, and more, all while keeping their brand at the forefront of both business and customer minds. 

Building Customer Value Through Established Channels

The last piece of the puzzle to capitalize on an omnichannel customer experience comes from maintaining those third-party retailer relationships. Not only because maintaining a steady revenue stream from established long-term relationships is just good business but also to reduce operational costs. 

Shipping and warehousing will always be the great equalizer. Sure, getting healthier margins from owned inventory selling directly to consumers is great! But, what about the cost of shipping? Many brands, including several Logicbroker customers, have come up with an innovative twist to the traditional fulfillment method. This dual selling environment capitalizing on B2B and D2C is the perfect opportunity to have your trusted distributors and dealers act as your fulfillment nodes and third-party sellers. 

For example, if a company sells high-end kitchen equipment that is heavy and difficult to ship, they can choose to incorporate their dealers as suppliers in the network. Working with Logicbroker, brands can easily show available local inventory to consumers so they can Buy Online, Pickup In-Store (BOPIS). Or even, Buy Online, Deliver From Store (BODFS) to reduce overhead on the brand. Those distributors, that used to capture every point of data, can now become useful tools in expanding brands’ datasets and exploring additional ways to sell to loyal customers.

Reach Out Today

Whether you’re looking to create a D2C selling environment or explore additional B2B fulfillment tools to expand revenue, Logicbroker is ready to help. Our flexible and robust multi-vendor commerce platform is designed to help any organization with its commerce fulfillment challenges. Our team of solutions engineers stands ready to explore unique ways to expand a brand’s business and drive revenue. 

About Logicbroker

Logicbroker is a premier multi-vendor commerce platform that seamlessly connects trading partners regardless of integration types. Our modern solutions empower retailers and brands to take control of their customer experience by harnessing and analyzing vital first-party data, reducing inventory risk, and curating their expanded assortment. By improving the visibility into our client’s commerce programs, Logicbroker can better position retailers and brands for transformative growth.

As business needs and demand shift, Logicbroker provides the ability to quickly switch suppliers and product fulfillment between 3P to 1P and responsibly find new sources of inventory that uphold your brand integrity and meet your delivery promise. ​We work with mid-market and Enterprise manufacturers, brands, and retailers across a number of verticals including Health & Wellness, Home Improvement, Consumer Electronics, Toys & Babies, and Consumer Packaged Goods and service brands such as Samsung, Victoria’s Secret, The Vitamin Shoppe, Walgreens, Ace Hardware, and BBQGuys.

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