Direct-to-consumer (DTC) is a business model in which consumer brands sell products directly to consumers from their own warehouses. This differs from the business-to-consumer (B2C) model, in which a brand moves its products via a wholesaler or retailer.
The DTC model continues to gain traction.. According to Statista, DTC ecommerce sales for established brands and digitally native companies are expected to exceed $226 billion this year.
Yet changes in the economic, political, consumer, and digital landscapes over the past few years have reshaped the way consumers shop. DTC companies need to keep up or risk falling behind.
This article will discuss the nine recent DTC trends you need to know to take your ecommerce business to the next level.
1. Zero-party data reigns supreme despite consumers’ privacy concerns
Recent changes in iOS and third-party tracking, combined with consumers’ ever-increasing privacy concerns, make it significantly more challenging for brands to engage in traditional customer acquisition tactics—namely, tracking customers across social media platforms and retargeting ads.
But even as customers are wary about sharing personal data, they still demand personalized advertising and shopping experiences. Some 71% of consumers expect personalization as a standard of service, and over three-quarters become frustrated when these expectations are unmet.
“Personalization is no longer a ‘nice-to-have,’” says Lisa Oberst, director of email marketing at Fuel Made. “It's a must-have for brands to offer a customer experience that builds long-term relationships.”
But it’s a double-edged sword: for personalization to work, you need customer data. DTC brands are using creative ways to capture zero-party data (information customers share willingly). That includes:
- Quizzes
- Polls
- Surveys
Jones Road Beauty does this well. The DTC makeup brand runs targeted TikTok ads, encouraging their audience to take an Octane AI beauty quiz.
The beauty quiz collects personal customer information to provide personalized recommendations. To see the personalized results and Jproduct recommendations, TikTok users are required to enter their email address.
This strategy uses a wide and highly engaged audience, helps Jones Road capture highly relevant customer data, and allows them to build their audience on a platform they owns: their email list.
According to Octane AI, Jones Road Beauty’s quiz increased the DTC brand’s average order value from $60 to $90, with a conversion rate of 16%. It captured over 50,000 customer emails in one month alone, not to mention a wealth of customer data the brand could use for personalization—like each subscriber’s skin concerns, how they’d use the products, and so on.
2. Generative AI infiltrates the DTC shopping journey
In April of 2025, ChatGPT claimed the top spot as the most downloaded mobile app. It set the record as the fastest app to reach 100 million users (just two months), with 400 million people now consulting the technology at least once a week.
Now more than a tool to answer simple questions, AI has cemented itself as part of many consumers’ purchasing decisions. According to a recent report, 27) of online shoppers believe that AI can improve the shopping experience. Forty-one percent are likely to use an AI tool to research purchases—a number that rises to 50% among Gen Z consumers.
As a result, tools like ChatGPT have evolved beyond text-based conversations. They enrich the chat experience with product carousels that display product images, reviews, and direct lipurchase links. It’s a more personalized shopping experience that relies on a user’s previous discussions to recommend products. “If the user had previously indicated a dislike for clowns, the model might also consider that and leave out clown costumes,” OpenAI explains.
To capitalize on this DTC trend, work on increasing your AI visibility. That means:
- Being present in AI data sources: Your DTC website, Reddit, YouTube, product review sites, and media publications are all reference points for AI tools.
- Gathering reviews: Drive the narrative by encouraging happy customers to leave positive reviews—not just on your website, but also on review sites like Yelp, Trustpilot, and Google Business.
- Syncing your product feeds: AI models look for consistency. Sync your product catalog with shopping channels like Facebook and Instagram, Google Shopping, and YouTube with Shopify app integrations.
💡Tip: Artificial intelligence may drive top-of-funnel product discovery, but online communities and brand loyalty keep people coming back directly. Invest in a customer loyalty program that incentivizes repeat purchases to bypass AI discussions in future purchasing decisions.
3. Forget uber-polished content—authenticity sells
The creator economy has grown to the tune of 50 million creators. And more consumers are purchasing online now than ever before, often making purchases based on the recommendations of friends, family, influencers, and even strangers.
“Personalized storytelling is the only thing that works from an advertising standpoint,” says Nik Sharma, CEO of Sharma Brands. “Ad platforms don’t know the exact intent level of a consumer to be able to match them with the right pairing of ad creative. As a result, storytelling that builds a relationship with a consumer on the other side is one of the only ways to continue scaling advertising.”
The rapid growth of DTC brands on TikTok is the perfect example of using personalized marketing and storytelling for customer acquisition.
For example, take a gander at Liquid Death’s TikTok and you’ll see comedy skit-style videos self-shot by customers. This creative storytelling seems to be working, considering this hip water brand has 7 million followers.
DTC brands are following suit with personalized storytelling that captures new customers—not only on TikTok, but on Instagram, Facebook, Snapchat, and even DTC brands’ homepages. And in many cases, it’s not uber-polished or high-production branded videos that we see—it’s content produced by happy customers.
“One DTC trend is increasing the usage of UGCs with actual customers rather than manufacturing it from the brand,” says Jason Wong, founder of Pughaus.
“The topic of UGCs has been hot in the space and brands have largely tried to manufacture it themselves by paying creators. But, with the introduction of apps like Bounty, brands can get authentic UGC from their customers and compensate them fairly.”
4. Affiliate programs drive DTC growth
User-generated content is not the only reaction to shifting consumer values. As more consumers say they trust recommendations from people they know over branded content, it opens up a wide space for DTC brands to set up successful affiliate marketing programs.
Smart DTC brands are shifting their focus away from tired DTC marketing practices in favor of affiliate programs, which encourage happy customers to recommend products to their family and friends.
“Affiliate programs are becoming increasingly popular among savvy DTC brands looking for their next big growth channel,” says growth adviser Zach Grove. “The beauty of performance-based affiliates is that—unlike paid ad channels—you only pay per sale, at a set amount that you’ve agreed to.”
DTC children’s sleep brand Moonboon, for example, has an affiliate program with more than 300 creators across five European markets. These micro-influencers have driven over $1 million in affiliate sales, accounting for approximately 10% of their monthly net sales with an average ROI of 6.5x.
The secret to Moonboon’s success? Carefully selecting which creators are accepted into the affiliate program. When applicants apply through Shopify Collabs, they’re vetted based on their online content, social media engagement, and whether they align with the brand’s mission. Those who fit the bill get an invitation to join the program.
“Shopify Collabs has simplified profiling and signing of new creators,” says brand director Robert V. S. Preuss. “The intuitive dashboard gives us a seamless overview of the affiliate program and general sales tracking.
“We are crazy about the simplicity of the tool and work on the platform daily. It is an incredible tool that helps us grow and scale our tactical lower-funnel work with creators who are passionate about our brand and products.”
💡Tip: Scale your UGC program with the Shopify Collabs app. Source influencers, issue free samples, and track commission from your Shopify admin.
5. DTC founders become in-house influencers
Influencer marketing still remains a lucrative marketing channel for direct-to-consumer brands. Three in four online consumers say they’ve purchased a product off the back of an influencer’s recommendation.
Paying an influencer to reach their audience through sponsored posts is the traditional way of facilitating these DTC partnerships. But modern creators are recognizing their influence—and in many cases, launching their own creator-led brands to capitalize on their audiences.
PRIME, the hydration drink brand founded by YouTubers KSI and Logan Paul, is just one example of this trend. The CPG brand boasts an eye-watering valuation of around $5.5 billion, with a single pack of energy drinks reselling for nearly $1,500 at the peak of its hype.
What does that mean for DTC brands that don’t have a creator spearheading their growth? One solution is to become a creator after the fact. Sharing behind-the-scenes content of founding or growing a company helps establish interpersonal customer relationships, as opposed to keeping your product as the sole focus of your DTC marketing campaigns.
Aimee Smale, founder of luxury fashion DTC brand Odd Muse, began documenting the process of starting the business on TikTok. She now has over 200,000 followers on her personal account. She credits this personal brand with playing a huge role in the success of her business.
“No one has my story and that’s what makes Odd Muse’s content so unique,” Aimee said in an interview with fellow creator/founder Grace Beverley. “A lot of fashion brands can use the same models and plan similar shoots—there can be a lot of crossovers. But if you’re using yourself, as a founder, and your story, no one has that.”
6. Inflation remains a top concern among buyers
As inflation rises, consumers are tightening their belts. Research from McKinsey shows rising prices are a major cause of concern for global consumers, and they’re changing their purchasing habits as a result. More than half now seek deals on every purchase, and a similar share plan to delay spending over the next three months.
“As the economy tightens, consumers will limit spending on things that don’t make them feel something or solve a real problem,” says Eli Weiss, senior director of CX and retention at Jones Road Beauty. “The days of dropshipping or Facebook ads arbitrage are over. It’s time to focus on customers and your brand.”
With inflation on the rise and consumers cutting back, what should a DTC brand that’s trying to grow do? Discounting might be the most obvious route forward. However, the long-term effects of continuous discounts can wreak havoc on brand perception and your product’s perceived value.
A more logical approach is a combination of:
- Dynamic pricing: Not all consumers are willing to pay the same price for a particular product. Dynamic pricing uses AI to digest large datasets—such as emerging trends, sales data, and supply chain trends—to find the optimal price each individual shopper will pay in real time.
- Smaller product sizes: More affordable versions of popular products can lower the barrier to trial. For example, customers might get a seven-day box of your bestselling supplements instead of the full-size box of 28. This can hook new customers in with a lower financial commitment. They can upgrade once they see the value firsthand.
- Community-driven offers: Instead of blanket discounting, reserve your best deals for repeat customers, who are more profitable by default. Lower customer acquisition costs for loyal buyers means greater profit margins and more wiggle room for discounts.
7. Customization and exclusivity drive DTC sales
The lure of bulk orders and tapping into an established customer base can lead many DTC brands to expand into wholesale. Legacy DTC native brands now sell their products through marketplaces and resellers, like Glossier, whose products you can now buy from beauty department store Sephora.
Yet selling directly to the consumer offers several advantages over wholesale, including:
- Full control of the product, pricing, and customer experience
- Direct access to customer data for personalized marketing and retargeting
- Higher profit margins by eliminating intermediaries
Selling both DTC and wholesale offers the best of both worlds.
To double down on the benefits that DTC offers, brands are leaning into customization and exclusivity. Almost 30% of shoppers purchase directly to discover exclusive products. In another survey, most age groups said they appreciate being able to customize products to their needs.
For example, Omy Laboratories, offers personalized skincare products. Unlike the one-size-fits-all serums and moisturizers that customers can find in any beauty department store, Omy custom-formulates their products based on each shopper’s answers to a virtual skincare consultation. The result? Some 95% of their sales come from DTC ecommerce.
8. Buy now, pay later (BNPL) spending soars
While it’s true consumers are cutting back their spending in the face of inflation, they are still making purchases. To ease costs for consumers, many online retailers and DTC brands are offering BNPL through payment options like Shop Pay Installments, Affirm, Sezzle, and AfterPay.
BNPL is an option that seems to be resonating well with consumers. Holiday shoppers spent $686.3 million on BNPL purchases during last year’s Black Friday Cyber Monday weekend (up 8.8% from the year before). In fact, the payment method has proven so popular that by 2028, an estimated 30% of the world’s population—over 86.5 million people—will utilize BNPL.
Thankfully, this DTC trend is easier to lean into than others. Shopify’s native BNPL solution, Shop Pay Installments, comes as part of the world’s best-converting checkout—no extra coding or integrations required.
Customers can opt to break larger purchases down into biweekly or monthly interest-free payments with no impact on their credit scores. Meanwhile, you still get paid upfront while Shopify handles the split payments.
"What other system allows you to enable people to make installments seamlessly?” says Tyler Medina, head of marketing at Backyard Butchers. “When they already have a Shop account or they're seeing a Shopify terminal and we're using Shop Pay, that level of comfort for the customer that wants to partake in something like that is pretty high.”
9. Gen Z takes the driver’s seat in DTC ecommerce
Millennials no longer drive the bulk of DTC purchases. Their younger counterparts, Gen Z, are in the driver’s seat. And their purchasing habits are vastly different from generations prior:
- They’re digital natives. Gen Z were one of the first generations to grow up with the internet. They had smartphones in high school and now account for 25% of all social media users in the United States. As a result, they’re more open to buying directly from brands.
- They have more discretionary income. The average 25-year-old Gen Z consumer has a household income of $40,000, which McKinsey reports is 50% higher than the average baby boomer’s typical income at the same age.
- They’ll pay for convenience. Despite Gen Z consumers being less optimistic about inflation stabilizing, they prioritize spending—often paying a premium for convenience. This generation uses grocery and food delivery services more often than any other demographic.
In other words: Gen Z has money to spend, and they’ll splash the cash on experiences that are convenient and share-worthy.
DTC brands like Starface are leaning into this with viral products that help Gen Zers showcase their self-expression. While prior generations might want to disguise their pimples, Gen Z wants to make them an accessory.
“There are such strong skincare brands out there,” explains Kara Brothers, president of Starface, in a Shopify Masters episode. “Of course there's several, and it's only getting more crowded day by day. But we feel and felt that there is an opportunity for something that speaks directly to our Gen Z consumer. They're very into self-expression. They love to have fun. They pride themselves on self-expression.”
Starface’s DTC strategy leans into pimple stickers as a fashion accessory—even recruiting Gen Z influencers to post photos of themselves wearing the patches, then reposting this content to the brand’s own Instagram account with very Gen Z-esque captions:
Stay on top of these DTC trends in 2025
The DTC business model is booming. It’s an excellent way to grow a business in today’s digital world. However, it’s also important to remember that DTC trends change with the winds. The tried-and-tested strategies of the last decade no longer remain the most effective way to operate a DTC business.
In 2025 and beyond, it’s authenticity that sells—even in light of inflation concerns, artificial intelligence, and rising costs impacting consumer behavior. Focus on creating experiences that customers can’t get elsewhere, sharing behind the scenes of what it’s like to run your business, and incentivizing word-of-mouth referrals with an affiliate program to succeed.
