DTC / D2C (Direct-to-Consumer)
A business model where a brand sells straight to shoppers, skipping wholesalers and retailers.
What is DTC / D2C (Direct-to-Consumer)?
Direct-to-consumer (DTC or D2C) describes a business model where a brand sells straight to shoppers through its own channels (a website, an app, or its own physical stores) rather than distributing through wholesalers, department stores, or third-party retailers. A mattress company that sells only through its own website, instead of through furniture stores, is operating DTC. The model became especially prominent among digitally-native brands in categories like mattresses, razors, and eyewear.
Why it matters
Selling DTC gives a brand control over pricing, the end-to-end customer experience, and (critically) first-party customer data, since it isn't relying on a retailer's point-of-sale system to know who bought what. That data ownership became more valuable after platform-level tracking changes, such as Apple's 2021 App Tracking Transparency rollout, made third-party ad targeting less reliable. US DTC ecommerce sales were projected to reach roughly $239.75 billion in 2025, close to 20% of total US retail ecommerce, though many brands today blend DTC with wholesale or marketplace channels rather than running pure-play DTC operations.