Why New-Age Brands Are Building Their Own E-commerce Empires

03 August, 2024

Charlie Munger

Why New-Age Brands Are Building Their Own E-commerce Empires

The future of retail isn't about shelves. It's about screens. And the smartest brands are rewriting the rules.

Control is Everything

  • Third-party platforms are bottlenecks: Think about it: when you rent a space, you're at the landlord's mercy. Same with marketplaces. Algorithms change, fees rise, and suddenly, your whole business model is at risk.
  • Own your customer data: it's the goldmine of the 21st century. When you sell direct, every purchase, every click, every preference is yours. This is the fuel for innovation, not just sales.
  • Brand experience is paramount: Every touchpoint is an opportunity to reinforce your brand story. From the product design to the unboxing, it's all about creating an unforgettable experience. Marketplaces are generic billboards; your own site is a curated gallery.

Margins Matter

  • Cut out the middleman: Every dollar that doesn't go to a platform is a dollar closer to profit. it's simple math.
  • Premium pricing: Direct-to-consumer gives you the flexibility to charge what your product is worth. No more discounting wars.
  • Higher customer lifetime value: When you own the relationship, you can nurture it. Loyal customers spend more over time.

Innovation Happens In-House

  • Speed is lifeblood: Want to launch a new product tomorrow? On your own platform, it's possible. Marketplaces move at glacial pace.
  • Customer feedback loop: When you sell directly, you hear from customers in real time. This isn't data; it's inspiration.
  • Experimentation is key: Your website is a living, breathing organism. Test, learn, iterate. This kind of agility is impossible on someone else's turf.

Building a Cult Following

  • Community is currency: Your customers aren't just buyers; they're fans. Direct relationships foster loyalty like nothing else.
  • Personalized experiences: With your own data, you can offer tailored recommendations, exclusive products, and rewards that keep customers coming back.
  • Storytelling matters: Your website is your stage. Use it to share your brand's mission, values, and story in a way that resonates deeply.

Why are business consistently forgetting The Value of Existing Customers?

  • Acquiring new customers is more expensive than retaining existing ones: The probability of selling to an existing customer is up to 14 times higher than selling to a new one. (Marketing Metrics)
  • Customer retention drives profitability: Increasing customer retention rates by 5% can boost profits by 25% to 95%. (Bain & Company and Harvard Business School)
  • Existing customers spend more: They are 50% more likely to try new products and spend 31% more on average compared to new customers.
  • The rising cost of customer acquisition: New customer acquisition costs have increased by almost 50% in the past five years.

Existing Customers as Brand Advocates

  • Loyal customers drive referrals: 77% of customers would recommend a brand after a positive experience. (Temkin Group)
  • Referrals can boost customer acquisition: Word-of-mouth marketing can significantly reduce customer acquisition costs.

Nurturing Customer Relationships

  • Personalized communication drives engagement: Adding personalization to email subject lines can increase open rates by 26%.
  • Loyalty programs foster customer loyalty: 77% of consumers are likely to stay with a brand with a loyalty program. (2018 Bond Brand Loyalty Report)
  • Customer feedback is essential: Regular customer surveys can provide valuable insights for improvement.

The Overlooked Opportunity

  • Customer retention is often under prioritized: Despite the overwhelming benefits, many companies still focus primarily on customer acquisition.

So, is building your own e-commerce empire risky?: Absolutely. it's a leap of faith, a gamble. But those who don't risk, don't win. The future belongs to those who dare to be different, to own their destiny.

We've built Zunderdog to be the rocket fuel for these pioneers. it's not just D2C software; it's a philosophy. We've worked with hundreds of businesses, from the bustling streets of India to the neon-lit dreamscapes of Tokyo and the relentless pace of New York. We've been recognized by the sharpest minds in business, from IDFC Bank, MoneyControl and CNBCTV18 to Nasscom and backed by the tech such as Google, Microsoft and Amazon via their respective startup programs.

Zunderdog isn't just about building websites or apps. it's about crafting custom ecommerce solutions that resonate, that inspire, that sell. it's about giving you the tools to not just compete, but to dominate the D2C space.

We're not just building software; we're building a movement. A movement of brands that refuse to be ordinary. A movement of entrepreneurs who are rewriting the rules of retail. A movement that's powered by Zunderdog.

Are you ready to join the revolution? Let's talk.