D2C companies move over e-commerce marketplaces, ride on “Unbundling of E-commerce”

Chennai, 08 December, 2023: India is witnessing a shift of Direct-to-Consumer (D2C) companies from large eCommerce marketplaces to individual service providers across the value chain. From developing the platform (website and apps) to driving discovery through social media and partnering with Checkout network providers to provide a seamless payment experience, D2C companies are looking beyond large e-commerce marketplaces to establish their brands. This is a part of the larger “Unbundling of E-commerce” trend unfolding in India.

 While D2C companies were able to get pan-India market access and become profitable courtesy the e-commerce marketplaces, they were unable to build a direct relationship with the consumers and also had to face high commissions. This is being addressed by the ‘Unbundling of E-commerce’ where D2C brands can choose the platform, logistics, and checkout network provider of their choice at significantly lower costs than marketplaces.

 Brands such as Boult Audio, Hammer, Gizmore, Corseca and Organic India, who began by selling their products through e-commerce marketplaces, have started serving customers through their own platforms as well. According to consulting firm KPMG, the Indian D2C market currently stands at approximately $12 billion in 2022 and is projected to cross $60 billion by 2027, growing at a CAGR of 40 percent.

 “As D2C brands come out of the shadows of the large e-commerce marketplaces, offering a checkout experience similar to these marketplaces becomes important to reduce friction in customer journey. At Simpl, we have built a Merchant First Checkout Network integrated with our revolutionary 1-tap pay which enables a seamless payment experience and customers can also view the status of their shipment like they experience on large marketplaces. This becomes important to ensure the brand constantly receives repeat customers which is essential for its success,” said Nitya Sharma, Founder and CEO of Simpl.

 Currently, over 26,000 small and large merchants including D2C brands and over 50 lakh active customers use Simpl’s 1-tap pay and Checkout Network across the country.

 “At the Bear House, we continuously seek exceptional partners to foster long-term business associations. Simpl was one such fortunate addition we made at an early stage, and our journey with them has been nothing short of phenomenal.The results we achieved through our partnership with Simpl surpassed all expectations. With their support and expertise, we experienced an outstanding 12.7X Return on Investment (ROI) and our website Conversion increased by 30% , reflecting the impact of our collaborative efforts on customer behavior. A pivotal aspect of our success story with Simpl was the remarkable increase in prepaid orders by 22% and a 6% reduction of RTO orders (Return to origin).One of the key pillars that set Simpl apart was their exceptional customer support. Their dedicated team was always responsive, proactive, and solution-oriented, making them an ideal partner for Direct-to-Consumer (D2C) companies like ours. With utmost confidence, I recommend Simpl to all of you who aspire to accelerate the growth of your brand and enhance the seamless customer journey” said Harsh Somaiya, The Bear House.

 Apart from offering a seamless checkout experience, there are multiple other pain points of emerging D2C brands that need to be solved such as easy access to credit, lack of marketing, and legal support among others. Simpl through its D2C Simplified initiative is driving several community efforts to empower the D2C ecosystem and has partnered with nearly a dozen companies over the last 1 year such as Klub, Adyogi, and Zolvit to provide support to the ecosystem.