Current State of Direct Commerce in India

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Better Product Information and Engagement: Consumers receive detailed product information, direct testimonials, and insights into brand ethos. Direct commerce brings the product to the consumer across multiple channels, enhancing convenience.
Competitive Pricing and Exclusive Offers: Brands often run loyalty programs, bundle deals, and exclusive offers, bypassing marketplace commissions, which allows them to provide better value to consumers.

India’s direct commerce ecosystem has immense growth potential, supported by the following dynamics:

Market Size and Growth: India is home to over 185 million online shoppers, making india phone number list it the third-largest digital shopping market globally. The direct commerce space is expected to reach $100 billion by 2025, with 600+ D2C brands already operating.
Merchant Base: There are an estimated 2 million online merchants in India, but only about 75,000 have their own websites making sales. This indicates significant headroom for growth as more merchants adopt direct commerce strategies.
Challenges of the D2C Model
While direct commerce offers compelling benefits, merchants face several challenges:

Customer Acquisition Costs: With high competition and advertising fees on platforms like Meta and Google, acquiring customers can be expensive.
Logistics and Supply Chain Management: Ensuring on-time delivery and reducing delays require robust inventory management and reliable logistics partners.
Building Brand Visibility: In a crowded market, creating a distinct brand identity demands a strong USP and omnichannel strategies.
Technology Management: Selecting and integrating the right tools for CRM, payments, and analytics can be stressful, especially for SMBs without technical expertise.