Over the past years, you might have read outrageous claims that direct-to-consumer is not the future of retail; it is brick and mortar instead or the end of the DTC brands. Evidence however points otherwise. We shall discuss the real meaning of Direct-to-Consumer fulfillment and its importance.
Direct Fulfillment: A Quick Definition
Over the past years, you might have read outrageous claims that direct-to-consumer is not the future of retail; it is brick and mortar instead or the end of the DTC brands. Evidence however points otherwise. We shall discuss the real meaning of Direct-to-Consumer fulfillment and its importance.
Direct Fulfillment: One Minute Definition.
What is Direct-to-Consumer (DTC) fulfillment? DTC fulfillment is a fast-evolving concept of sales, in which brands sell to customers themselves. A direct-fulfillment model bypasses the intermediaries and forgets the cost of selling through large retail brands and brick-and-mortar stores.
The move by brands to own customer relationships, which started as brands wanting to own relationships, culminated into an entire operational redesign, refined by how firms will handle each DTC fulfillment challenge- inventory allocation to last-mile delivery.
The innovative companies use consumer direct fulfillment to:
- Establish intimate customer contact.
- Enhance product customization.
- Connect with such important consumer values as sustainable logistics.
DTC Growth and Market Opportunity
It has been demonstrated that explosive growth in DTC has been experienced as ecommerce increases consumer interest in purchasing directly through desired sources other than via intermediaries. DTC is expanding further due to diversification of companies and inclusion of additional products into the preexisting distribution models.
DTC is currently contributing up to half the total revenue to 86 percent of manufacturers and retailers.
Data published in July 2025 according to our 2025 survey of supply chain decision-makers represents a shift of unsustainable pandemic surge to more predictable and profitable growth, 82% reporting steady 10-25% growth rates in the next 12 months. Companies worldwide are supplementing B2B and traditional distribution systems with DTC order fulfillment programs in order to achieve greater customer interest, operational efficiencies, sales, and profit margins.
Growing Pains to Anticipate with DTC
Direct fulfillment is both technically and financially difficult to launch. It becomes hard to maintain margins unless the fulfilment operations are in essence prepared.
Indicatively, companies with ERP or legacy WMS have a restriction in the order quantities because of the manualized and time-consuming processes. This is complicated by the addition of new SKUs, locations or channels. Absence of automated workflow and technology that may take weeks to master overloads already lean workforces.
Nevertheless, firms are becoming more intelligent in how to manage DTC volume spikes and talent demands. Rather than recruiting in times of shortage:
- 34% transfer training of current employees.
- 32 percent develop new skills in existing teams.
- One-fourth of them apply automation to seal the labor gaps.
Also, Direct-to-Consumer fulfillment ultimately needs new functionality in the system. It is likely that legacy suites are an issue to have problems with integration since they were not designed to onboard or support the modern supply chain applications such as a marketplace without long and painful custom projects.
DTC Fulfillment Solutions
Modern DTC fulfillments were designed to scale on the first day, and immediately there were pre-built WMS integrations with ERP, market places, carriers, retailer/EDI networks, material handling equipment (MHE), and so on.
Increasing pains which are solved by direct-to-consumer fulfillment solutions are:
- Inflation
- Reduced consumer spending
- Sky-high logistics costs
- Changing shopping tastes.
The relevance of technology is at a new level – 98% of supply chain leaders are now considering investing in fulfillment technology such as WMS systems, OMS systems, and specialized 3PL WMS systems software that allows automated processes. This strategic wide-spread investment is an indication of how technology moved to a competition edge to lifeblood of operational success of DTC.
The Direct-to-Consumer fulfillment solutions employed by the Drive Fulfillment and other high-growth 3PL companies have an admittedly positive impact:
- Megaboost operational efficiencies in short period of time.
- Enhanced customer and reach out.
- New rich offerings such as the personalization and sustainable delivery/sourcing practices.
- Elite management of customer experience.
- Fluent technology upgrades and integrations with the exanship infrastructure which needs little time or expenses.
Firms that utilize integrated platforms experience 200 percent increased efficiency than firms that utilize dissimilar systems.
3PL and Direct Fulfillment
As DTC sales is growing rapidly, the opportunity to offload the burden on the customer is vast, and 3PL logistics leaders can lead the growth of the DTC. The best DTC brands desire the best 3PLs- that is providing 3PLs with services that can assist the clients in achieving growth targets.
Direct-to-Consumer and 3PL are inseparable but what fulfilment strengths capture this market without transferring the costs to the customers?
Ecommerce and Direct Fulfillment
The effect that DTC has had on ecommerce logistics has been colossal. The ecommerce boom also provided the consumer with the immediate response to the increased information on buying; consumers adapted. In the same manner, the ecommerce supply chain should adapt to the sudden change in operations that was brought about by this change.
You must innovate fast. The modern ecommerce order fulfillment software was important to high-growth brands unlocking the ability to realize value and differentiation in this area with a high growth.
Breaking Into Direct Fulfillment
This year, the sales of DTC are likely to reach yearly projections of $212.9 billion in sales, as eMarketer forecasts, compared to 182.6 billion sales made in the previous year. Over three-quarters of brands, retailers, and 3PL firms sampled are putting more capital into DTC fulfillment, aiming at profitable, sustainable growth as opposed to all-cost growth.
High-growth brands become locked in with technologies that have long reach and provide customer stickiness with:
- Quick and convenient delivery services.
- Order accuracy
- Personalization
- Products relating to the current changed beliefs on consumers.
Intelligent decision-making operations relying on AI are the most successful, where 60% of them use AI to discover cost-saving opportunities and 56% of them use AI to make inventory decisions basing on demand forecast opportunities.
Inventory Management for Direct Fulfillment
Direct-to-Consumer adds new unexplained complexities of inventory management. These obstacles make the roads bumpy in view of supply issues and stock outs that are usually not within your control.
The consumer fickleness altered the rules, competition and considerations of the supply chains. As per our report, the most successful companies deal with such issues directly:
- Sixty percent put more importance on inventory management software to control inventory in real time.
- 44 percent stake on AI-driven order optimization.
- Fifty six point six percent indicate that their highest strategic priority is advanced inventory management.
Order Management and Direct Fulfillment
DTC must have order management systems. They unite all the inventory activities in one platform, and teams can coordinate inventory in all touchpoints and present products in good time with no errors. OMS solutions have super simple, flexible dashboards and reports with which optimal fulfillment options are chosen automatically.
They also perfect customer experience by processing:
- Payments
- Returns
- Order substitutions
- Customers choose such options as buy online/pick up in-store (BOPIS) or ship directly from store.
Dermalogica UK, a Unilever brand, had to use order management and DOM software in order to realise the rapid value and distinction in DTC fulfilment.
The Direct-to-Consumer fulfillment solutions provided by Deposco allow Dermalogica to streamline the fulfillment operations and take advantage of market growth in brands sold directly with the capacity of providing delivery over other, more conventional mediums.
Sustainable Logistics in DTC Fulfillment
The consumer desires sustainability, and that is it. Although you can now only find time to concentrate on getting boxes out of the door, the key point of direct fulfillment operations now should be in making better planning of how the boxes will be packed and delivered, rather than just be the recipient of changes that are soon coming in the coming years.
Though consumers become thirsty with unrivaled speed of delivery, your role is making your firm reach a higher level of reaching planet conscious customers with features such as:
- Localized sourcing
- Timed deliveries
- Order pooling
- Zero-emissions options
- Optimal packaging policies that offer savings to both the consumer and business.
The consumers in the modern world want products that are delivered not only quickly but also in a sustainable manner. Major businesses prefer to find innovative ways of balancing between speed and sustainability by:
- Local sourcing reducing emissions through transportation.
- Deliveries on schedule at the most efficient routes.
- Maximizing the shipment density through order pooling.
- Proper fitting packaging that does not waste materials.
Conclusion
Direct-to-Consumer fulfillment is not anymore an alternate sales channel, it is becoming a giant in retailing and manufacturing. As 98 percent of supply chain heads invest in fulfillment technology and as business leaders deploying integrated platforms achieve efficiency 200 percent higher, the writing is on the wall: companies need to change or become obsolete. The secret to DTC success is the adoption of the current fulfillment solutions that allow operating efficiently, providing individualized customer experiences, and sustainable practices. With the current demand that consumers are changing into a more speedy, customized, and conscience delivery service, those companies that strategically invest in the appropriate technology and process will be in a position to reap the immense expansion prospects afforded by DTC over the next few years.