Persona: DTC brands

Choosing the right backend software is crucial for any e-commerce business, especially for the  Traditional D2C archetype. These companies focus on building a unique product and selling directly to consumers. While seemingly straightforward, their journey involves  exploding complexity  as they scale.

The Traditional DTC: From Garage Startup to Growth Stage Chaos

This is the most common e-commerce story: a passionate founder with a unique product targeting a specific market. Brands like Dollar Shave Club and Glossier fall into this category. Despite their differences in products, they share a similar operational evolution. This evolution dictates when and how they should leverage software to streamline their business.

The Complexity Curve: A Breakout Moment

Imagine a graph with complexity on the Y-axis and milestones (revenue) on the X-axis. Ideally, a business's complexity increases gradually with growth. However, Traditional DTC companies experience a  complexity spike  during the growth stage (around $500,000 to $5 million in sales). This is caused by a series of decisions that add layers of complexity to their operations.

The Garage Stage: Keeping it Simple

This initial stage is all about finding product-market fit. The entrepreneur focuses on basic tasks like making sales and fulfilling orders. Tools like Shopify and Google Sheets are sufficient for managing a limited product offering and fulfilling orders through the platform or a 3PL.

Growth Stage: Complexity Explosion

As the business grows, things get more intricate. Here are some common decisions that contribute to the complexity spike:

• Expanding Products: Offering bundles, variations, and new product lines increases inventory management complexity.
• 3PL Integration: Outsourcing fulfillment to a 3PL requires integrating systems for order processing and data exchange.
• Wholesale Accounts: Selling to wholesale partners introduces complexities like custom pricing, payment terms, and invoicing.
• Overseas Sourcing: Importing materials or products adds complexities like customs and managing relationships with international suppliers.

The Expansion Stage: Complexity Explodes

As the company  expands to new retailers and launches a direct-to-consumer (DTC) channel,  their complexity explodes. They juggle multiple distribution centers, EDI processes, and inventory across various channels. Their trusty spreadsheets and manual processes quickly become  overwhelmed.

The Pain Point: Outdated Tech Stack

The problem? The simple tech stack from the garage stage isn't equipped to handle the complexities of the growth stage. Tools like ShipStation and Google Sheets struggle to connect with 3PLs, manage bundles, or handle wholesale account integrations.

The Luminous Solution

The entrepreneur, overwhelmed by manual processes and disconnected systems, feels stuck. They might be tempted to jump to an enterprise-level solution like NetSuite, which is expensive and overkill for their needs.

Luminous is designed specifically for the challenges faced by Traditional DTC brands in the growth stage. Here's what we offer:

• 3PL Integration: Seamless connection with your 3PL for efficient order processing and data flow.
• Inventory Management: Centralized system to manage product variations, bundles, and forecasting.
• Wholesale Management: Streamlined workflows for handling wholesale accounts, including pricing, invoicing, and integration with your accounting software.
• Scalable and Affordable: We offer a cost-effective solution that grows with your business, without the hefty upfront costs of enterprise software.

Are You a Traditional DTC Brand?

If you're struggling with managing multiple channels, complex inventory, and disconnected systems, Luminous can help. We can be your partner in navigating the growth stage and unlocking  sustainable success.

Book a demo and explore our solutions today and see how Luminous can empower your Traditional DTC business!