Transition from B2B to D2C
Direct sales via e-commerce: How companies can increase their sales by successfully diversifying their business model.
Table of contents
Introduction
D2C e-commerce as a business model for brand manufacturers
E-commerce is fundamentally changing the classic B2B sales model. Direct sales to end customers – i.e. D2C – are no longer the exclusive preserve of B2C brands. More and more B2B companies are seizing the opportunity to sell their products directly to consumers.
E-commerce expert Timo Daedrich from the consultingheads network has identified key success factors and challenges based on a specific case study.
For companies that have previously sold exclusively via intermediaries, entering the D2C market involves a number of hurdles. However, it is worth rethinking the sales strategy, especially when customer demand is growing. After all, those who rely exclusively on traditional wholesale channels are not only giving away margins, but also valuable customer access.
It is therefore worth diversifying the business model – provided the implementation is well planned. In the following, we show which aspects are crucial in the transition from B2B to D2C.
Timo Daedrich - The expert behind the transformation
Timo Daedrich- Freelance consultant for e-commerce, marketplaces & D2C, helping companies to build and expand their online business , create new e-commerce business models and establishthe necessary process and system landscape.
As a “digital native”, he combines knowledge from e-commerce, Business and IT. Timo founded two successful companies: one for the digital support of small and medium-sized small and medium-sized enterprises and a second agency specializing in Amazon marketing. specialized in Amazon marketing.
After two years, he switched to freelance consulting and now helps companies to optimize their online business and implementthe right strategies and processes.
His focus is on D2C e-commerce business models, processes and systems as well as online marketplaces and online stores.
Challenges
D2C e-commerce and the challenges of a B2B manufacturer
The company we are talking about is a family business with a turnover in the double-digit millions that specializes in the development and manufacture of has specialized in child seats. The The original distribution channel was via specialist retailers – either under the brand name or under sub-brand names.
Four years ago, when Timo joined, the company was at the beginning of online sales, initially via Amazon, but with a lack of processes, strategies and Resources. A marketing agency was engaged in Amazon marketing, but lacked lacked an understanding of the e-commerce process, which leads to inefficient use of budget.
Especially for SMEs from the B2B market, it is important to understand D2C and know the benefits. Questions that drove manufacturers were:
Should I operate B2B and B2C at the same time? Will I scare off my dealers or what can I do to prevent this? What differentiation strategies do I use to successfully integrate both B2B and D2C? Can I operate both business models in parallel with my existing processes and resources? What does the business case look like?
Solution approach & procedure
The typical phases of a D2C e-commerce project
The successful transition from traditional B2B sales to a D2C e-commerce model was divided into three clearly defined phases that address both strategic and operational aspects and required a comprehensive transformation of the company’s processes.
In the first phase – onboarding and setup – the focus was on continuing existing processes in a stable manner and simultaneously empowering the e-commerce team. Short-term training courses prepared the employees for the new requirements, while the existing Amazon business continued to operate on a transitional basis thanks to immediate measures.
The second phase comprised the strategic orientation. A well-founded D2C strategy was developed in workshops with the management and the heads of sales and marketing. This included defining goals, setting KPIs, analyzing potential and observing the competition. Key points included product range design, pricing and targeted internal communication to promote acceptance and commitment throughout the company. At the same time, external partners were selected and briefed for the implementation.
The third phase involved the concrete realization and implementation, including quality management. A detailed sales channel strategy was developed – for example, whether the launch should take place via marketplaces, an in-house online store or both. This was followed by the definition and optimization of all e-commerce processes: from product data maintenance to order and returns processing through to accompanying processes such as customer service and marketing.
Integration into the IT and system landscape was key: whether the existing ERP should be expanded or new tools introduced was carefully considered. This resulted in a target architecture with an order management system (OMS), PIM and multichannel solutions. At the same time, accounting, ERP and customer service were specifically tailored to the requirements of the D2C business. Timo repeatedly emphasized how important a stable process basis is – anyone who introduces store systems without proper preparation risks considerable problems later on.
During the entire implementation phase, he not only supported the company as a consultant, but also took on operational responsibility for managing internal and external resources as well as quality management. The aim was not only to achieve short-term success, but also to enable the company to manage its e-commerce business independently in the long term. He also remained available as a flexible partner during subsequent scaling, for example by connecting new marketplaces.
Results & successes
Sales growth and other measurable successes of the D2C project
After a few months, clear successes became apparent: monthly sales rose from four-digit to six to almost seven-digit amounts within two to three years. The growth extended across the company’s own online store and various marketplaces, which now accounted for a relevant share (e.g. 10%) of total sales.
Thanks to a broader sales channel strategy and optimized content on platforms such as Amazon, Otto and Kaufland, the company received positive feedback – including from retail partners. Automated processes for product data and accounting led to noticeable efficiency gains.
In marketing, targeted social media and Google Ads campaigns ensured increased demand and a stronger market presence. At the same time, systematic KPI tracking provided better insights into customer behavior, which led to the continuous optimization of the product range and processes – and thus laid the foundation for sustainable success.
Sales increase by 50%
Noticeable increase in efficiency
Increased demand and market presence
Better understanding of customer behavior
Lessons Learned
The transition from B2B business to D2C e-commerce offers enormous opportunities – provided that companies take a structured and strategic approach. The case study shows that an agile, practice-oriented approach with clear process integration and communication is crucial.
A key learning is the opportunity to test innovations directly on the market. New products can be launched in small quantities via D2C sales in order to obtain customer feedback at an early stage. This significantly shortens market research and development cycles – successful products can then also be placed in B2B sales.
A modular, lean architecture is recommended for getting started: a start via marketplaces with external logistics can be implemented quickly and cost-effectively. Internal systems such as the online store and ERP are expanded over time – a pragmatic, iterative approach with a focus on scalability.
Strategic communication with retail partners is essential. Anyone who introduces B2C sales without involving their retailers risks resistance. Transparent discussions, shared benefits such as better content, exclusive product ranges or stable prices help to shape the dialog positively and avoid conflicts.
An often underestimated success factor is the adaptation of internal processes. D2C affects almost all areas of the company – from accounting and ERP to customer service. Long-term success can only be achieved if these are seamlessly integrated and digitized.
It is also important to continuously measure and develop the project. Success is not only reflected in sales, but also in efficiency gains, automation and a growing online share of the overall business. KPI tracking, business intelligence and process analyses provide the basis for continuous optimization.
Last but not least, trial and error is part of the process. The e-commerce market is dynamic, with platforms and customer behavior changing rapidly. Companies should react flexibly to new opportunities – whether through additional marketplaces, new marketing channels or by obtaining external expertise. The support of experienced e-commerce consultants can help to build sustainable structures and remain on course for growth in the long term.
Why consultingheads
“Timo didn't just help us set up the right e-commerce structures. He empowered our entire team to actively shape the change.”
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Results that convince. Just as the switch to D2C led to an increase in efficiency and turnover in this case study, we also attach great importance to solutions that deliver immediately measurable results – without detours and with maximum efficiency.
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