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How One Direct Sales Merchant is Riding the Ecommerce Wave

10Dec, 2020
How One Direct Sales Merchant is Riding the Ecommerce Wave

The shift to online shopping continues to gain momentum, influencing and affecting all types of online sellers. Black Friday marks biggest growth day of holiday period for direct sales retailer, Wayfair. They reported a 58% increase in direct retail sales for peak five-day holiday shopping period of Thanksgiving Day through Cyber Monday. Who said you can’t make money in direct sales?

According to the Wayfair, they have generated $6.2 billion in net revenue for the twelve months ending September 30, 2018. This direct sales retailer is headquartered in Boston, Massachusetts with operations throughout North America and Europe, employing more than 10,900 people.

So how did a direct sales company (such as Wayfair) do it? They did it by providing value for their customers by offering fast, free shipping with no order minimums and launching thousands of flash sales kicking off on Black Friday and running throughout the entire weekend. They also have also created brand loyalty by being one of the few home furnishing stores that do not charge for any type of delivery, thus dipping their toes into the wide Blue Ocean Strategy.

The Blue Ocean Strategy is a marketing theory from a book published in 2004 which was written by W. Chan Kim and Renée Mauborgne. Briefly, the theory is companies can succeed by creating “blue oceans” of uncontested market space, as opposed to “red oceans” where competitors fight for dominance, the analogy being that an ocean full of vicious competition turns red with blood. Many direct sellers have a niche but need to develop strong customer relations to create loyal customers.

Online Shopping Influence Over Direct Sales

In addition to using smart and effective marketing strategies, direct sales sellers have also benefited from the popularity of ecommerce. As the broader shift from brick and mortar to online shopping continues to gain momentum, direct sales continue to capture online sales. The days of dealing with pushy or aggressive home furnishings sales people are going by the wayside. According to the DSA, Direct Sales Association, direct sales is a preferred shopping method with 74 percent of Americans who have purchased goods or services through direct sales. The buying rate tends to rise during the holidays too, as more people opt to shop from the comfort of their own homes.

Black Friday marked the highest growth day as consumers continue to shift their spending from traditional retailers to direct sales online. Direct selling offers plenty of advantages. Most tie in well during the holiday season. Like ecommerce, direct sales allow consumers to buy items from the comfort of their home or at in-home parties. Combined with free shipping and an eclectic selections of home furnishings, this direct sales online retailer is making the most of the ecommerce trend with very little competition.

This direct sales business is just one example of how direct sales associates can also make the most out of brand loyalty (an edge many direct sellers have), marketing and the trend of buying items online.

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