D2C Vs Amazon - Where to invest first

Transcript:

So this is a very interesting question. If you are planning to start D2C brand, I would highly recommend you to start with Marketplace asa channel first, especially if you are a bootstrapped brand and not a funded one.

Why I say this is because Marketplace as a channel will give you a lot of initial push in terms of your brand visibility, as well as initial profits that you can further reinvest in your D2C channel later.

It's really hard for a customer to trust an unknown brand and their website.But people trust Amazon.I've seen a lot of people taking a different route saying, Amazon commissions are really high.

I can invest those commissions into my ads.I'll make more money if I do Facebook ads, Instagram ads, because there are no commissions that I need to pay on my website, etc, etc.

But what they don't understand is it's really hard to get initial customers. So, for example, if you are a beauty brand in categories like Beauty health care, the real profits lie in repeat purchase.If you're able to drive initial customers through Amazon and if they like your product, it's a lot easier for them to trust your D2C channel as well.

I can recall this conversation that I had with the head of marketing of one of the top Indian brands selling health supplements. I'll not take the name. They are one of the top now, but when I was managing them four or five years back, they were not that big.

But the conversation was like Himanshu, I don't care what you do with my ads. I want my weigh protein to be delivered in each and every home where there are fitness enthusiasts.

That's the only goal that I have in my mind right now.I will make profits from cross sell up sell, repeat purchases, but you give me as many new to brand customers as you can.And when I look back, it makes a lot of sense as well as I see them ruling the health supplements markets now.

And there are many such examples likeBoat, Mama earth, Wow skin science, etc, etc.And all of them got big through Marketplace as a channel.