B2C vs D2C: Which Model Should Your Brand Use?

If you’re building a consumer brand in 2026, you’ve probably heard the terms B2C (Business-to-Consumer) and D2C (Direct-to-Consumer) thrown around. Maybe you’re wondering which model is right for your business, or if you should even care about the difference. The truth is, the choice between B2C and D2C isn’t just a matter of jargon—it shapes your marketing, your margins, your customer relationships, and your growth trajectory.

Let’s break down what these models really mean, how they play out in the real world, and how to decide which one fits your brand’s goals.

What’s the Difference Between B2C and D2C?

B2C is the classic retail model. Your brand sells products to consumers, but often through intermediaries—think department stores, Amazon, or big-box retailers. You might have your own website, but most of your sales come from third-party channels.

D2C means you sell directly to your customers, usually through your own online store. You control the entire customer experience, from marketing to fulfillment to post-purchase support. There’s no middleman.

At first glance, D2C sounds like a subset of B2C. And in a way, it is. But the difference in approach is massive.

Why Does the Model Matter?

The model you choose impacts:

Your margins (how much profit you keep)

Your brand control (how you show up to customers)

Your marketing strategy (who owns the customer relationship)

Your growth levers (how you scale)

Let’s dig into each.

Margins: Who Gets Paid?

In a B2C model, you’re often selling wholesale to a retailer, who then marks up your product and sells it to the end customer. You get paid upfront, but you’re giving up a chunk of the profit.

In D2C, you keep the full retail price (minus your costs and ad spend). That sounds great, but it comes with a catch: you’re now responsible for acquiring every customer yourself. As many experts in the field point out, ad spend is often the #1 or #2 line item for D2C brands—sometimes even bigger than your cost of goods.

Key takeaway: D2C can mean higher margins, but only if you can acquire customers efficiently. If your ad spend is out of control, you might end up with less profit than a B2C brand.

Brand Control: Who Owns the Experience?

B2C brands often have to play by the retailer’s rules. Your product might be one of hundreds on a shelf. The retailer controls the in-store experience, the pricing, and sometimes even the messaging.

D2C brands own the entire customer journey. You decide how your website looks, what your emails say, how you handle support, and how you follow up after the sale. You can build a community, collect first-party data, and iterate quickly.

Real-world example: Jones Road Beauty, as discussed in the Marketing Operators podcast, uses D2C to build a direct relationship with customers, run personalized retention campaigns, and test new products rapidly. They don’t have to wait for a retailer’s approval to launch a new kit or run a sweepstakes.

Marketing Strategy: Who Owns the Customer?

In B2C, the retailer often owns the customer relationship. You might not even know who bought your product. That makes it hard to build loyalty, run retention campaigns, or get feedback.

D2C brands collect emails, phone numbers, and purchase history. They can run targeted campaigns, test offers, and build LTV (lifetime value) over time. As the Marketing Operators team points out, the earlier you can move a customer into your LTV flow, the more valuable they become.

But: D2C brands have to be great at marketing. You can’t just rely on foot traffic or Amazon’s search algorithm. You need to master paid social, email, SMS, and more.

Growth Levers: How Do You Scale?

B2C brands can scale quickly by landing big retail accounts. One deal with Target or Walmart can 10x your sales overnight. But you’re also at the mercy of those retailers—if they drop you, your revenue can vanish just as fast.

D2C brands scale by acquiring more customers, launching new products, and increasing LTV. It’s a grind, but you’re in control. You can test new creative, optimize your funnel, and build a loyal base.

Hybrid models are increasingly common. Many brands start D2C to prove demand, then expand into retail once they have traction. Others do the reverse.

The Case for D2C: When Does It Make Sense?

D2C is a great fit if:

You want to build a brand, not just sell a product.

You have a unique story, community, or value proposition.

You’re willing to invest in marketing, creative, and customer experience.

You want to own your data and customer relationships.

You’re comfortable with the grind of paid acquisition and retention.

D2C is not for everyone. If you’re not ready to spend on ads, build a creative flywheel, and handle fulfillment and support, you might be better off with a B2C or hybrid approach.

The Case for B2C: When Does It Make Sense?

B2C is a strong choice if:

You want to focus on product and supply chain, not marketing.

You have a product that fits well in existing retail channels.

You’re looking for rapid scale through distribution deals.

You’re okay with lower margins in exchange for less complexity.

B2C isn’t “easier”—it’s just a different set of challenges. You’ll need to build relationships with buyers, manage wholesale pricing, and compete for shelf space.

What About Hybrid Models?

Most successful brands today use a mix. They start D2C to prove demand, build a community, and collect data. Once they have traction, they expand into retail to reach a broader audience.

Example: Ridge Wallet started D2C, built a massive online following, and now sells through select retailers. They use D2C to test new products, run creative campaigns, and drive LTV, while retail provides scale and brand awareness.

Lessons from Real Operators

Let’s pull some wisdom from the transcripts:

1. D2C is a Margin Game—But Only If You’re Disciplined

Chris Rudy, founder of Adacted hammers this point: “Ad spend is often the #1 or #2 line item for D2C brands. If you’re not careful, you’ll spend your margin chasing growth that never materializes.” Use incrementality testing, control your spend, and don’t fall for the myth that more spend always equals more growth.

2. Creative Is the Lever in D2C

You need a process for generating, testing, and iterating on creative. The brands that win are the ones with a creative supply chain, not just a product supply chain.

3. Retention Is Where the Profit Is

D2C brands live and die by LTV. As Alex Greifeld and others point out, the earlier you can move a customer into your retention flow, the more profitable your business becomes. Use email, SMS, and post-purchase touchpoints to drive repeat purchases.

4. B2C Can Be a Rocket Ship—But It’s Risky

Landing a big retail account can change your business overnight. But you’re also at the mercy of the retailer. If they drop you, you’re in trouble. Diversify your channels and don’t rely on any one partner.

5. Hybrid Models Are the Future

Most brands will need to master both. Start D2C to build your brand, then expand into B2C for scale. Use your D2C data to inform your retail strategy, and vice versa.

How to Decide: B2C vs D2C for Your Brand

Here’s a simple framework:

What are your strengths? If you’re a marketer, D2C might be your game. If you’re a product or supply chain expert, B2C could be a better fit.

Where is your audience? If your customers are shopping online, D2C is a must. If they’re in stores, B2C is essential.

What are your goals? If you want to build a brand and own the customer, D2C. If you want rapid scale, B2C.

Can you do both? Most brands should aim for a hybrid approach over time.

Final Thoughts: There’s No One-Size-Fits-All

The best brands in 2026 are flexible. They use D2C to build community, test products, and drive LTV. They use B2C to scale, reach new audiences, and diversify risk.

Don’t get caught up in the hype. Focus on your margins, your customer experience, and your creative process. Test, learn, and iterate. And remember: the model is just a tool. The real work is building a brand people love.

Ready to take your brand to the next level? Whether you’re D2C, B2C, or somewhere in between, the key is discipline, creativity, and relentless focus on the customer. Our team specializes in helping both D2C and B2C companies acquire new customers profitably.

Reach out to see how we can help you!