As consumers spend more and more time shopping online, some brands are foregoing physical retail locations entirely and embracing an online-only model.
E-commerce has hit nearly every industry, from fashion to homegoods to healthcare. Some estimates indicate that retail e-commerce sales are set to reach more than $740 billion by 2023, up from $460 billion in 2017. Companies agile enough to get out in front of the e-commerce wave stand to make a substantial profit, but doing so requires making certain adjustments to their business models.
In response to evolving customer demands, a growing number of direct-to-consumer (D2C) brands have embraced an online-only model. These brands forego brick and mortar locations entirely, instead using their websites as virtual storefronts. There are a number of advantages to this approach for both retailer and customer — for instance, not having to pay rent for physical stores saves costs, and housing inventory in strategically-placed warehouses allows for faster deliveries.