How appliance retailers boost e-commerce sales through DTC channel

They need to understand customer needs and overcome technical challenges.

Around 80% of appliance industry retailers are planning to ramp up their online sales through direct-to-consumer (DTC) channels over the next three years due to low purchases observed on e-commerce platforms.

In a report, McKinsey & Company noted that 32% of consumers visit manufacturers' websites as part of their purchase journey but only 1.6% of them make their purchases online.

“This glaring disparity signals that companies must develop an improved and seamless DTC e-commerce experience to convert these high-intent visitors into buyers,” the report read.

“The DTC channel, specifically e-commerce, has proven to be a vital growth driver across industries. Companies have experienced significant improvements in customer lifetime value and higher margins due to this channel, which also enables new subscription business models and additional services,” McKinsey added.

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To maximise DTC e-commerce, companies need to meet customers’ expectations in terms of pricing benefits and delivery options. Services and accessories could also attract customers and earn their loyalty.

However, there are still several barriers to DTC expansion which include channel conflict, lack of technology and limited supply chain capacities.

“To overcome these obstacles, it is crucial to invest in modernizing the e-commerce experience and technology, as well as in cultivating stronger relationships with suppliers to ensure an adequate supply of goods. Taking these steps can raise the potential for DTC appliance sales to new heights,” McKinsey said.

McKinsey said retailers need to have a clear DTC strategy and prioritise enhancing the offered customer experience.

They also need to collaborate and alight with other department silos within the organisation and conduct research to understand customer needs.