For the first time, eMarketers is breaking out direct-to-consumer (D2C) ecommerce sales, defined as digitally native brands that started as independent online retailers selling directly to consumers. eMarketer estimates exclude travel and event tickets, payments (such as bill pay, taxes or money transfers), food or drink services, gambling and other vice good sales.
In 2019, D2C ecommerce sales reached $14.28 billion in the U.S. In 2020, eMarketer forecasts that sales will grow by 24.3%, to $17.75 billion. Although it’s too early to predict the full impact of the coronavirus pandemic on D2C sales, eMarketer anticipates that brands in the sector will face mounting challenges.
“Even though consumers are buying more products online due to the coronavirus, digitally native D2C brands should anticipate hardships in the coming months,” eMarketer senior forecasting analyst Oscar Orozco said. “Sales will continue to shift from nice-to-have products to must-have products, with D2C brands falling under the nonessential category. Disruptions in the supply chain are also likely. That will mean slower shipping times, normally a distinguishing factor for D2C products.”