When Your Own Online Shop Works for Manufacturers
Three structural conditions must all be met: no established dealer network (or one you are deliberately dissolving), in-house B2C logistics skills (warehouse, shipping, returns workflow, support) and the willingness to keep investing in ongoing operating and marketing costs before the shop earns its first euro.
Pure digital-native brands like Casper, Warby Parker or Glossier show that the model works when the conditions are right. But those conditions differ structurally from those of a mid-sized company with a dealer network built up over years.
Why Classic D2C Fails for Brand Manufacturers with a Dealer Network
Channel conflict is the standard consequence. Dealers cut their orders, marketing partnerships are not renewed, competitors take over the freed-up shelf space. Over 12 to 24 months, the net revenue loss typically exceeds the D2C gain.
Then come the operational problems: B2C logistics is a different skill from B2B. Returns management is a machine of its own. End-customer support has different SLAs. Proven manufacturer processes fit poorly with B2C speed.
On top of that, your own performance marketing permanently eats a noticeable share of the margin, because you have to win every end customer yourself instead of having specialist retail serve them for you.
Direct-to-Dealer as a Structural Alternative
Direct-to-Dealer keeps the brand conversion page (= your own domain, your own data, your own attribution) but hands delivery to specialist retail. No warehouse of your own, no shipping of your own, no returns logistics of your own. Channel conflict dissolves structurally, because every order lands with a dealer.
The investment: no logistics build-up, and no fee per order for you. The dealers pay it, see price list. No warehouse, no extra staff. Marketing efficiency rises thanks to real attribution.
Decision Matrix
Build your own shop: no dealer network, B2C skills in place, clear premium positioning with higher margins, willingness to carry ongoing fixed costs for shop, warehouse and support.
Choose Direct-to-Dealer: an existing dealer network with at least 5 active online dealers, no B2C logistics skills, closeness to end customers + marketing attribution wanted, channel peace strategically important.
Both in parallel: only sensible for very large brands (over €100 million in revenue) with an in-house D2C department and a clear split of product ranges.