Many mid-sized manufacturers face a strategic crossroads: Traditional B2B business is running, wholesalers and specialist retailers are established partners, but at the same time, the pressure to also sell directly to consumers is increasing. Direct-to-Consumer (D2C) promises higher margins, direct customer access, and independence from middlemen. But is this step really worth it? And when does a supposed opportunity become an expensive distraction?
In this article, we explore the differences between B2B and D2C from a manufacturer's perspective, show you which prerequisites must be met for a successful D2C entry, and give you concrete decision aids. One thing is certain: An additional sales channel doesn’t automatically mean more revenue – but first, more complexity.
What does B2B vs D2C mean for manufacturers?
B2B (Business-to-Business) refers to the sale of products to business customers – typically wholesalers, specialist retailers, industrial customers, or resellers. The manufacturer sells in larger quantities, often with longer payment terms, fixed conditions, and through established sales structures like field sales, catalog, or digital B2B platforms.
D2C (Direct-to-Consumer) means that the manufacturer sells their products directly to the end consumer – without middlemen. This usually happens through their own online shop, marketplaces, or physical stores. The manufacturer takes on all tasks: marketing, sales, customer service, logistics, and returns.
For many mid-sized manufacturers, B2B is the core business. D2C is viewed as an addition to reach new target groups, increase margins, or manage the brand more directly. However, this step isn't automatic – it requires new skills, resources, and above all, a clear strategy.
Key differences at a glance
B2B sales:
Sales to business customers (retailers, resellers, industrial customers)
Larger order quantities, longer sales cycles
Established sales structures (field sales, catalog, digital platforms)
Focus on product quality, delivery reliability, conditions
Less marketing effort per customer
D2C sales:
Direct sales to end customers
Smaller order quantities, shorter purchasing decisions
Own online shop, marketplaces, social commerce
Focus on brand building, customer experience, performance marketing
High marketing effort per customer (CAC = Customer Acquisition Cost)
The question isn’t which model is "better" – but which one fits your business model, resources, and strategic goals.
Why are so many manufacturers thinking about D2C?
The motivation for a D2C channel is understandable. In recent years, the framework conditions in retail have changed – and many manufacturers directly feel the impact:
Margin decline in traditional retail: Wholesalers and specialist retailers are under pressure themselves. Their margins are falling, they demand better conditions from the manufacturer. The result: The manufacturer earns less, despite delivering the same performance.
Dependence on middlemen: Those who sell exclusively through retailers have no direct access to end customers. Customer data, feedback, and purchasing behavior remain invisible. Strategic decisions are based on assumptions instead of facts.
Changed buying behavior: End customers – even in the B2B environment – get information online, compare prices, and expect digital order options. Manufacturers who are not visible lose relevance.
Success stories from other industries: Companies like Miele, Vorwerk, or Dr. Hauschka show that manufacturers can successfully sell directly – often with higher margins and stronger customer loyalty.
But caution: These success stories are the result of years of investment in brand, infrastructure, and marketing. A D2C channel doesn’t just come alongside – it requires strategic commitment.
The advantages of a D2C channel
When the conditions are right, a D2C channel can bring significant advantages:
Higher margins: Without middlemen, more of the sale price remains with the manufacturer. Instead of 30–50% retail margin, you can realize full value creation.
Direct customer access: You learn who buys your products, how they are used, and what needs your target group has. This data is invaluable for product development and marketing.
Brand control: You decide how your brand is presented – without dependence on the retailer's assortment policy or pricing.
Flexibility in pricing: You can adjust prices dynamically, run promotions, or position premium products specifically.
Reach new target groups: Some end customers prefer to buy directly from the manufacturer – due to trust, exclusive products, or better advice.
Independence: You reduce the risk of being dependent on a few large retailers. An additional sales channel diversifies your business model.
The challenges and risks of D2C
As tempting as the advantages sound – a D2C channel also brings significant challenges:
High investments: Building and operating an online shop, performance marketing (SEA, social ads), content production, customer service – all this costs money. The question is: When does it pay off?
New skills required: D2C involves performance marketing, conversion optimization, returns management, social media, influencer cooperation. Do you have this expertise internally – or do you need to buy it expensively?
Conflict with existing trading partners: If you sell directly to end customers, you compete with your own retailers. This can lead to tensions – up to delisting from the assortment.
Logistics & Fulfillment: B2B means: one truck, one delivery, one customer. D2C means: hundreds of individual shipments, returns, customer inquiries. Is your logistics prepared for this?
Customer Acquisition Cost (CAC): Online marketing has become expensive. If you have to spend 50–100 euros to acquire a customer, the average basket value and repurchase rate must be right – otherwise, D2C doesn’t pay off.
Time commitment & distraction: A D2C channel binds management attention. The question is: Does this distract from your core business – or strengthen your strategic position?
When is a D2C channel truly worthwhile?
D2C doesn’t make sense for every manufacturer. The decision depends on several factors:
1. Product suitability
D2C works particularly well with:
Products with high margins (basket value > 100 euros)
Products that require explanation, where the manufacturer can provide the best advice
Niche products that are difficult to find in traditional retail
Products with high repurchase rate (subscription models, consumables)
Brands with strong emotional connection
D2C is difficult with:
Low-priced mass products (basket value < 30 euros)
Products that are available everywhere in retail (commodity products)
Complex B2B products requiring individual consultation or installation
2. Brand awareness
If your brand is already known, you have an advantage: Customers actively look for you. If, on the other hand, you are an unknown brand, you first have to create awareness – and that costs.
Ask yourself:
Do end customers already search for our brand?
Do we have a community or fanbase?
Is there organic traffic on our website?
If you can answer these questions with "yes," D2C is much more promising.
3. Resources & skills
A D2C channel requires a team – internally or externally. You need:
E-commerce management
Performance marketing (SEA, social ads)
Content production (texts, images, videos)
Customer service (email, phone, chat)
Logistics & fulfillment
Realistic assessment: Calculate with at least 3–5 full-time employees or an external partner that bundles these services. The alternative: You start with an MVP (Minimum Viable Product) and test if D2C is profitable for you.
4. Managing commercial conflicts
If you already sell through retailers, you need to actively manage the conflict. Possible strategies:
Exclusive product lines: You sell different products via D2C than through retail – so you don’t directly compete.
Different pricing: D2C prices can be higher (e.g., due to premium service, extended warranty, consultation) – this keeps retail attractive in terms of price.
Cooperation instead of competition: You use D2C for brand building and customer contact, but refer to retailers for certain products (store locator).
Transparent communication: Talk openly with your trading partners. Explain why you are introducing D2C – and how both sides can benefit.
5. Checking cost-effectiveness
Ultimately, the calculation counts. Ask yourself the following questions:
What is my average basket value?
How much can I spend on customer acquisition (CAC)?
What is the repurchase rate?
When do I reach break-even?
Example calculation:
Basket value: 150 euros
Margin: 60% = 90 euros
CAC (Customer Acquisition Cost): 60 euros
Contribution margin per first purchase: 30 euros
Repurchase rate: 40% within 12 months
Contribution margin second purchase: 90 euros (no CAC)
Result: After the first year, the average contribution margin per customer is 66 euros. If you win 1,000 new customers, you generate a contribution margin of 66,000 euros – minus fixed costs (shop, marketing, personnel).
This calculation shows: D2C only pays off if you have either high basket values, low CAC, or high repurchase rates – ideally a combination of all.
Best practices: How to succeed with the D2C entry
If you decide on D2C, you should proceed strategically:
Start with an MVP
Don’t build the perfect shop, but start with a lean Minimum Viable Product. Test if there is demand before investing large sums.
Specifically:
Simple online shop with 10–20 products
Focus on a clearly defined customer segment
Performance marketing with a small budget (5,000–10,000 euros/month)
Measurements: Conversion rate, CAC, repurchase rate
After 3–6 months, you will know if D2C pays off for you.
Rely on trust and authenticity
In the D2C business, customers don’t just buy a product – they buy trust in your brand. Use your strengths as a manufacturer:
Show your production, your team, your story
Offer excellent customer service (consultation, return policy, guarantee)
Communicate transparently about origin, quality, sustainability
Use customer reviews and testimonials
Use data for continuous optimization
The greatest advantage of D2C: You see what works. Use this data:
Which products are bought most often?
Where do customers abandon the checkout?
Which marketing channels bring the best customers?
What questions does the customer service ask most frequently?
These insights flow back into product development, marketing, and sales – a cycle that strengthens your entire business.
Think long-term
D2C is not a sprint, but a marathon. Don’t expect the channel to be profitable after three months. Plan realistically:
Year 1: Setup, learning, first customers
Year 2: Optimization, scaling, profitability
Year 3: Establishment as a fixed sales channel
Those who give up too early waste potential. Those who hold on too long despite poor numbers burn money.
Common mistakes when entering D2C
From over 25 years of experience in e-commerce, we know the typical pitfalls:
Mistake 1: Too high expectations
Many manufacturers underestimate how long it takes for D2C to become profitable. Plan realistically – and expect start-up losses.
Mistake 2: Lack of resources
An online shop "on the side" doesn’t work. Either build an internal team or bring in external expertise – but half-hearted efforts lead to mediocre results.
Mistake 3: Ignoring commercial conflicts
If you don’t involve your retailers, you risk losing trust and revenue in the B2B business. Communicate transparently and find win-win solutions.
Mistake 4: Lack of differentiation
Why should a customer buy from you – and not from Amazon or a retailer? If you don’t have a clear answer to this, D2C will be difficult.
Mistake 5: Technology before strategy
The most beautiful shop brings nothing if the strategic foundation is lacking. First clarify: Who is my target group? What is my value proposition? How do I acquire customers?
Case study: How a manufacturer successfully introduces D2C
Imagine: A mid-sized manufacturer of high-quality kitchen utensils has been selling through retailers and wholesalers for decades. Margins are declining, dependence on a few large retailers is growing. Management decides: We test D2C.
Phase 1: Strategic planning
Target group: Hobby cooks who value quality
Product selection: 15 premium products that are difficult to find in retail
Pricing strategy: 10–15% above retail prices (justified by direct consultation, extended warranty)
Channel: Own online shop + Instagram + Google Ads
Phase 2: MVP launch
Go-live in 8 weeks
Marketing budget: 8,000 euros/month
Goal: 50 orders/month in the first quarter
Phase 3: Learn & optimize
After 3 months: 120 orders/month, average basket value 180 euros
CAC: 55 euros (lower than expected because the brand was already known)
Repurchase rate after 6 months: 35%
Phase 4: Scale up
After 12 months: 400 orders/month, revenue 72,000 euros/month
Contribution margin: 40,000 euros/month (after deducting all costs)
Insights flow back into product development: new product line based on customer feedback
Result: D2C is a profitable channel after 18 months, accounting for 15% of total sales – without cannibalizing the B2B business.
Alternatives to owning a D2C channel
D2C isn’t the only way to sell more directly to end customers. Consider these alternatives:
Marketplaces (Amazon, eBay, Kaufland.de):
Quick access to millions of customers
Lower investments than an own shop
Disadvantage: High commissions, little brand control
Partner shops & collaborations:
You sell through a trading partner’s online shop
Advantage: No cannibalization, but strengthening the partnership
B2B2C models:
You supply products to retailers who sell on behalf of the manufacturer (e.g., dropshipping)
Advantage: You stay in the background, but benefit from direct customer access
Hybrid models:
You use D2C for brand building and customer contact, but refer to retailers for certain products
The question isn’t "either B2B or D2C," but "which combination fits our business model?"
Conclusion: D2C is not an end in itself – but a strategic decision
An additional D2C channel can be a worthwhile addition for mid-sized manufacturers – if the conditions are right. Key factors include product suitability, brand awareness, resources, and a clear strategy. Anyone who approaches D2C half-heartedly risks money, time, and trust – both with end customers and with existing trading partners.
The most important insight: D2C is not a substitute for B2B, but a complement. The most successful manufacturers strategically use both channels – creating a diversified, future-proof business model.
If you are deciding whether D2C makes sense for your company, you should honestly answer three questions:
Do we have a product that can be sold online with sufficient margin?
Do we have the resources (internally or externally) to professionally build D2C?
Can we manage trading conflicts – or are there ways to strengthen both channels?
If you can answer these questions with "yes," the step is worthwhile. If not, there are other ways to strengthen your digital sales – without the risk of an unprofitable D2C channel.
From our experience with over 2,500 e-commerce projects, we know: The best results are achieved by companies that plan strategically, calculate realistically, and are willing to continuously learn. D2C is not a sprint – but a marathon that pays off long-term for the right companies.
FAQ – Frequently Asked Questions
What is the difference between B2B and D2C for manufacturers?
B2B means manufacturers sell to business customers like wholesalers or specialist retailers. D2C (Direct-to-Consumer) means the manufacturer sells directly to end customers – usually through their own online shop. The main difference lies in the target audience, order quantities, margins, and the skills required.
When is a D2C channel worthwhile for mid-sized manufacturers?
D2C is particularly worthwhile for products with high margins, strong brand awareness, and high repurchase rates. Sufficient resources for marketing, customer service, and logistics must also be available. A realistic profitability calculation is crucial – not every manufacturer benefits from D2C.
How do I avoid conflicts with existing trading partners when entering D2C?
Transparent communication is key. Strategies like exclusive D2C product lines, different pricing, or cooperation models (e.g., store locator) help avoid conflicts. It’s important that both channels complement rather than compete.
What costs arise when building a D2C channel?
Expect setup costs of 20,000–50,000 euros (shop, systems, content) and ongoing costs of at least 10,000 euros/month (marketing, personnel, operations). The actual costs depend on product complexity, target audience, and scaling. An MVP approach helps minimize risks.
How long does it take for a D2C channel to become profitable?
Typically, you should count on 12–24 months for a D2C channel to become profitable. The first months are for setup, learning, and optimizing. Those who give up too early waste potential – those who hold on too long despite poor numbers burn capital. Realistic planning is crucial.
Conclusion
Entering direct sales is a strategic decision for mid-sized manufacturers that requires careful thought. B2B and D2C do not exclude each other – on the contrary: The most successful companies use both channels to strengthen their market position, reach new target groups, and become more independent in the long term.
The key is ensuring D2C is not viewed as an end in itself, but as part of a larger strategy. Ensure product suitability, resources, and profitability are right. proactively manage trading conflicts. And most importantly: Start with a lean MVP, learn from the first months, and scale only when the numbers are right.
If you're unsure whether D2C is the right step for your company, a thorough strategy development is worthwhile. An external perspective helps identify blind spots, realistically assess risks, and set the right priorities.
We look forward to your feedback: What are your thoughts on D2C? Have you already gained experience or are planning to enter? Feel free to share your thoughts in the comments.
Do you want to find out if a D2C channel makes sense for your company? We support you with thorough strategy development – from market analysis to profitability calculation to implementation planning. Schedule a non-binding initial consultation now to discover what opportunities digital direct sales offers your business.
