Many manufacturers and distributors are no longer staying in traditional “lanes.” To drive growth and diversify revenue streams, they’re expanding into direct-to-consumer (DTC) sales, launching their own online storefronts, and even implementing drop shipping strategies.
While the DTC model offers tremendous opportunities for revenue expansion and brand control, it also presents significant challenges, including selecting and integrating the right technology solutions and ensuring seamless compliance with tax regulations in new markets. Without the right partners, navigating these complexities can become overwhelming and costly.
This is where Avalara, Kensium, and Acumatica come in.
Avalara, a leader in automated tax compliance, and Kensium, an expert in ERP-connected ecommerce, partner to provide a seamless, scalable DTC solution — built to integrate directly with Acumatica Cloud ERP. Together, they help manufacturers and distributors confidently launch and manage DTC sales without disrupting existing B2B operations.
Key questions to ask before entering DTC
Before diving into DTC, businesses must take a strategic approach. Here are three key questions every manufacturer and distributor should consider:
1. What are my company’s goals?
Expanding into DTC is not just about selling products online — it’s about long-term business growth. Start by evaluating your company’s readiness.
- Are you looking to increase revenue streams beyond traditional B2B channels?
- Do you want to build direct relationships with customers?
- Are you prepared for potential impacts on current retailer partnerships?
- What are the risks of not moving into DTC, and how do they compare to the risks of doing so?
Setting clear objectives helps businesses define a road map for expansion, including technology selection and operational execution.
2. What steps do you need to take?
Adding a DTC component requires more than just launching an online store. Businesses need a well-integrated, scalable, and efficient system that connects their ecommerce platform to critical back-end operations.
With Kensium, manufacturers and distributors gain access to expert solutions tailored for leading ecommerce platforms, including BigCommerce, Shopify, and Adobe Commerce.
Avalara plugs directly into Acumatica to automate sales tax calculations and filings, making tax compliance across states and jurisdictions much simpler.
Kensium services include:
- Enterprise integration – Seamlessly connect your ecommerce storefront to ERP, fulfillment centers, 3PL logistics, and marketplaces.
- Accelerated migration – Transition to a modern ecommerce platform with our fast, cost-effective migration packages.
- Award-winning design – Leverage data-driven UI/UX design to optimize customer journeys and maximize conversions.
- Digital marketing and SEO – Enhance search engine rankings and increase organic traffic with our technical SEO expertise.
By partnering with Kensium, manufacturers and distributors can help ensure their DTC operations run smoothly, efficiently, and profitably.
3. What are your blind spots?
The transition to DTC often comes with unexpected challenges:
- Operational complexity – Managing inventory, fulfillment, and customer service at scale requires robust technology and automation.
- Retailer relationships – DTC expansion can impact existing B2B partnerships. A strategic approach ensures smooth coexistence.
- Sales tax compliance – Expanding into new markets means new tax obligations, which can be difficult to track and manage.
This is where Avalara automated tax compliance solutions come in. Avalara’s automated tax compliance solutions work seamlessly with Acumatica ERP to calculate, track, and file sales tax accurately. This helps eliminate the risk of costly tax errors — and ensures compliance across jurisdictions. With Avalara, manufacturers and distributors can confidently expand into DTC without the risk of costly tax errors.
Ready to maximize your DTC success today?
Launching and scaling a successful DTC channel requires the right strategy, technology, and partnerships. With Avalara handling tax compliance, Kensium providing end-to-end ecommerce solutions, and Acumatica powering your operations, manufacturers and distributors can seamlessly enter the DTC space, drive revenue growth, and future-proof their business.
Download our guide to get expert insights, real-world examples, and a road map for successful DTC expansion.
Looking for a tailored strategy? Contact Kensium to schedule a consultation and discover how we can help you unlock the full potential of DTC sales.
