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Are D2C brands a threat to marketplaces like Amazon, Zomato etc?


A very genuine and a bit hard-to-answer question! In simple words…we’d say NO!

Several Reasons stand in justification of the answer. The very first one is that retail marketplaces like amazon have played a major role in helping these brands grow. The owner of the famous D2C brand BOAT, Aman Gupta, also admits it gratefully on the famous show Shark Tank. So the marketplaces basically serve them as a business growth support. Thus they aren’t a threat. Although, the vice versa can be a matter of discussion since several surveys suggest that amazon is still the buyer’s prior choice. Citing other services that it offers!

Although, on the grounds of ease, Self-owned platforms offer full control and easy flow of money, whereas amazon holds the amount for 28 days.

When it comes to the FMCG market…. If a brand or outlet tries to set up its own ecosystem to compete with Zomato, Swiggy, Blinkit or such aggregators, It would be a big challenge, and would certainly lead to productivity loss and cash burning. Also, the ease with which they can start here won’t be there on their own platform.

The marketplaces bring in greater levels of operational efficiency and customer centricity in their business models and New and innovative D2C brands provide them with unique products with lower price points; making it a win-win for both entities. D2C is as much about retail as it is about Digital. Hence it is imperative that the D2C and retail marketplaces are more sustainable by adopting competition over collaboration.

Competition is not between D2C players and the marketplaces. It is in fact core to the business model and performance, which in the future will be driven by how efficiently they align and increase cohesion, agility, and responsiveness within this network.

However, the constellation of sellers, that is present there, who might not be able to offer such price points can be a matter of debate.

Now since Amazon has launched its own brand Amazon basics. Thus vice versa is being empowered. exponentially.

All in all, there is a fair tug-of-war situation between the two ends.


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