Insights — Channel Creation & New Revenue Streams — 3 min read
Will Selling D2C Upset My Distributors?
Channel conflict is the number one fear of B2B leaders. But in a digital world, 'not selling direct' is rarely a sustainable strategy. The secret is management, not avoidance.
In short
Selling D2C will only upset your distributors if you compete with them purely on price or if you fail to communicate your strategy. By maintaining price parity (respecting RRP), offering D2C-exclusive products or bundles, and using the direct channel to generate brand awareness that benefits all sellers, you can launch a D2C channel while keeping your distributor relationships intact.
When a manufacturer or B2B brand announces it is going D2C, the distributor network often reacts with alarm. They see it as a zero-sum game: every sale you make direct is a sale they have lost. If not managed carefully, this can lead to de-listing, reduced marketing support, and a breakdown in the very relationships that built your business.
However, the reality of the modern market is that consumers expect to be able to buy from the source. The goal is to build a D2C channel that complements, rather than cannibalises, your distributor network.
The Three Types of Channel Conflict
To manage the relationship, you first need to understand what the distributors are actually afraid of:
| Conflict Type | The Distributor's Fear | The Strategy to Mitigate |
|---|---|---|
| Price Conflict | You will undercut them because you have higher margins. | Maintain RRP strictly on your own site. |
| Inventory Conflict | You will keep the best stock for yourself. | Transparent allocation or D2C-only SKU variants. |
| Relationship Conflict | You will 'steal' their best customers. | Focus D2C marketing on new-to-brand consumers. |
D2C as a 'Brand Ship' for everyone
A well-run D2C site can actually help distributors. It serves as a flagship for the brand, allowing you to showcase the full range, provide better product information, and run top-of-funnel marketing that distributors aren't equipped to do. This raises the 'tide' for everyone. You can even include a 'Where to Buy' section on your D2C site, sending leads to local distributors for customers who want to see the product in person.
Communication is the key
Don't launch in secret. Talk to your top distributors. Explain that the D2C channel is about reaching a segment they aren't reaching, or about gathering data to improve products for everyone. When distributors see you as a partner in growth rather than a competitor for the same pound, the friction disappears.
The Evans Strategy
The B2B to D2C Programme (£1,995 + VAT/month) includes a specific module on channel conflict management. We help you design a pricing and product strategy that protects your existing revenue while unlocking the new direct stream. We've seen that a 'no-surprises' approach is the only way to build a multi-channel business that lasts.
Could your business support another route to revenue?
Evans Channel Creation identifies, validates and builds additional revenue channels from capabilities a business already has — B2B to D2C, D2C to B2B, product to service, recurring revenue or partners — and says so plainly when a channel should not be built. Programme from £1,995 + VAT per month over six months.
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