APR 06

Mariel Soto Reyes

D2C ecommerce had a

huge 2020 and will remain
an important contender
Article

The numbers: We forecast that US direct-to-consumer (D2C) sales spiked 45.5% last year to
$111.54 billion. That puts D2C ecommerce sales at 14.0% of all ecommerce sales for 2020, a
share that will remain fairly consistent as sales increase through 2023.

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What’s driving that growth? As eMarketer forecasting director at Insider Intelligence Cindy
Liu points out, “There has been a greater focus on owned-and-operated online channels in
recent years, and this focus has been heightened by the pandemic. With disrupted supply
chains, delays in shipping, and physical store closures, the D2C model has become attractive
once again.”
Why it’s worth watching: D2C ecommerce allows brands to better target consumers and
further entrench themselves with their audiences. For example, Harry’s has taken advantage

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of its wealth of data and feedback to customize and create products that shoppers want.
That builds a solid relationship between brands and customers, which can strengthen brand
identity and improve margins. The lower cost and greater control that D2C provides is pulling
more brands into the medium. Last year, D2C grew 45.5% compared with marketplaces’
42.6%, and that growth will continue this year, at 15.9% and 14.9%, respectively.

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