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Why Direct to Consumer Brands Struggle with Profitability

Indigo 9 Digital

Then there are those pesky returns. How often have you bought something online, then returned it without a second thought? For the retailer that’s a cost that eats into profits. Warby Parker Warby Parker which was founded over a decade ago in 2010 is often looked at as the crème de la crème of direct-to-consumer retailers.

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5 Ways to Make Your Retail Store Grow Faster

Indigo 9 Digital

Trader Joe’s is another retailer that gives away a lot of free samples and “ what a lot of people may not know is the biggest marketing expense we have at Trader Joe's is actually just letting people try our food,” says Tara Miller, Trader Joe’s Director of Marketing. Even Warren Buffett would be impressed with those returns.

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eCommerce and its Profitability Issue. Why its So Hard to Make Money

Indigo 9 Digital

If getting the order to you is expensive what about returns? Raise your hand if you have ordered multiple versions of the same outfit in different sizes because you don’t know what your size is at a particular retailer. This process of ordering and returning goods is very expensive. Take mattress retailer Casper.

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6 of the Top Reasons Online Businesses Fail

Indigo 9 Digital

An innovative idea and a slick website might get customers excited but many founders eventually realize it’s actually pretty hard and expensive to acquire customers when you don’t have any retail stores. And when your customers demand free shipping or when return costs add up a promising business can be put into jeopardy pretty quickly.

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The Reasons Behind Starbucks’ Great Customer Experience

Indigo 9 Digital

Even Warren Buffett would be impressed with those returns. In 2014 Starbucks introduced a complete tuition reimbursement program for employees located in the United States who worked at least an average of 20 hours per week. That would have given us a war chest of cash and significantly increased return on capital.

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5 of the Best Ways DTC Brands Get New Customers

Indigo 9 Digital

This is because the vast majority of retail sales still happen in stores with online sales representing only 14.6% of retail sales in 2022 in the United States. Consumers like to touch and feel products and let’s be honest returning online orders can be a hassle. Explore unconventional and creative marketing.

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McDonald’s Digital Strategy, 10 Things You Need to Know

Indigo 9 Digital

Our loyalty customers are far more likely to return in the next 30 days compared to non-loyalty customers," said Joseph Erlinger, president of McDonald's USA. If you do subscribe to our retail trends newsletter to get the latest retail insights & trends delivered to your inbox 4. Do you like this content?

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