Why there still haven’t been more billion-dollar acquisitions for direct-to-consumer commerce startups

Meanwhile, the more recent rise of social media — plus digital publishing and the continued growth of e-commerce — has given brands strong incentives and tools to build direct relationships with their clientele, skipping the retail middlemen and keeping the rest of their margin.

The direct-to-consumer wave began in the twenty-tens as a new generation of startups promising to “disrupt” traditional industries for consumer goods. Instead of leaving the market to century-old stalwarts like Gillette, for example, a company like Dollar Shave Club, founded in 2011, would set up its own supply chains to manufacture razors; add cle... See more

It’s different now, when brands can build their own communities on Instagram and Twitter, sell cases and subscriptions directly to consumers, and re-engage through text, e-mail, and Facebook ads.

Amazon is at a crossroads and like the brands who depend heavily on Instagram or Facebook.com, the rule of online retail is multichannel diversification. The product manufacturers and brands who keep up an even-handed approach to acquisition will not be impaired when one channel determines their fates for them.