Seldia, the European Direct Selling Association, has been helping others to understand what Direct Selling is over five decades and we continue to do so. In this article, we explore what Direct Selling entails and what sets it apart:
- Terminology: Direct Selling goes by various names, including Relationship or Social Selling, highlighting its emphasis on personal connections between sellers and customers.
- Part of Retail Sector: Direct Selling is a small but active part of the broader retail sector. However, Direct Selling operates in a unique way by offering personalised services and high-quality products usually without the overhead costs of traditional retail.
- Core of Business: Direct contact and personal connection between sellers and customers, which nowadays might be facilitated by digital tools, are the core of Direct Selling, regardless of the method.
- Varied Methods: Direct Selling adapts to consumers’ preferences and digital advancements using both online and offline channels such as personal networks, home parties/product demos and social media. We describe ourselves as omnichannel.
- Independent Sellers: Services and products are sold directly to consumers by independent sellers who like in any other business receive a compensation based on sales.
- Products and Services Categories: Direct Selling focuses mainly in three categories:
- Wellness.
- Cosmetics and personal care.
- Household goods and durables.
Since the best way to understand something is through an example, we would like to finalise with an example that illustrates how the Direct Selling sector works.
Anna, who is intrigued by wellness products, meets Lucie, a part-time independent seller specialised in such products. Lucie introduces the products to Anna, who, after finding what she needs, makes a purchase through a link to the company’s website shared by Lucie. Lucie receives a commission for Anna’s purchases.
For more insights into Direct Selling and Seldia’s advocacy in the sector, visit our website.
