E-commerce
September 17, 2026
Are you wondering why retailers, brands, and manufacturers are converging in 2021? The answer lies in one word: direct-to-consumer (DTC) sales have disrupted historical models, and the pandemic has accelerated the movement. For a merchant, understanding this convergence is essential to adapt your positioning and avoid suffering from the competition of your own suppliers.
The retail landscape has become more fluid: brands are selling directly, retailers are creating their own lines, and manufacturers no longer hesitate to bypass intermediaries. This blurring of roles is not a fad, but a fundamental trend redefining the rules of the game.
So, how to navigate this new ecosystem? On the agenda:
What still distinguishes a brand from a retailer in 2021?
Why are DTC brands turning to wholesale?
How are retailers fighting back with their own private labels?
What impact did the pandemic have on this convergence?
How does Qstomy help to take advantage of this evolution?
Here we go.
Summary
What still distinguishes a brand from a retailer in 2021?
The boundary between brand, retailer, and manufacturer has blurred considerably. Historically, the journey of a product was linear: the manufacturer produced it, the distributor transported it, and the retailer sold it. Each link in the chain added its margin and expertise.
Today, this chain is shortening. A brand like Nike sells directly on its website, while continuing to supply physical stores. A retailer like Target develops its own ranges, directly competing with its historical suppliers. As for consumers, they no longer make the distinction: they buy a product they like, regardless of who manufactures or distributes it.
For an e-commerce merchant, this confusion of roles is both a threat and an opportunity. It forces you to rethink your value proposition and justify your existence in the face of players who can now compete with you on your own turf.
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Why are DTC brands turning to wholesale?
So-called "digitally native" brands (DNVBs) have long epitomized direct sales without intermediaries. Names like Allbirds, Casper, or Warby Parker built their success on this model. But the market reality is catching up: DTC alone is no longer enough to reach a critical size.
Aaron Orendorff, from the agency Common Thread Collective, sums it up bluntly: "Beyond a few notable exceptions, DNVB does not scale. Nor does DTC, for that matter." As a result, brands like Bonobos or Casper have ended up integrating wholesale, either through acquisition or by partnering with traditional retailers.
For you, the merchant, this means that your direct competitors can become your suppliers, and vice versa. A brand that used to sell to you in bulk may decide to compete with you on your own site. Conversely, you can consider distributing brands that were previously exclusively available through direct sales.
How are retailers fighting back with their own private labels?
Faced with the rise of DTC, major retailers are not remaining passive. Amazon, Walmart, Target, and many others are massively developing their own private labels. These products, sold under their own name, compete directly with the national brands they otherwise distribute.
The example of Wildology is striking: this pet food brand was born from a partnership between around forty agricultural retail chains in North America. The product competes with major traditional brands like Purina or Blue Buffalo. The customers of the latter have become competitors.
For a small merchant, this trend is a strong signal. If your suppliers can become your competitors, and if your competitors can become your suppliers, your added value no longer lies in the product itself, but in the relationship you build with your customers. It is this bond that you must cultivate.
What impact did the pandemic have on this convergence?
The Covid-19 pandemic acted as an accelerator. Buying habits changed abruptly, and it is unlikely that consumers will fully return to their pre-crisis behaviors. Online shopping, in-store pickup, and home delivery have become the norm.
Brands and retailers had to invest heavily in technology to meet this demand. These investments are not lost: they remain in place and continue to serve. Competition has intensified, pushing every player to adopt an omnichannel strategy to offer the best possible experience.
For you, this means the bar is higher. Your customers compare their shopping experience with that of the biggest players. If you do not offer a seamless journey, from the first click to delivery, you risk losing sales to more agile players.
How does convergence affect buying behavior?
All this convergence has a direct effect on buying behavior. Consumers no longer wonder if a product comes from a brand, a retailer, or a manufacturer. They buy a product they like from a seller they trust.
This apparent indifference is actually an opportunity. It means that the distinction between channels matters less than the quality of the experience. A small merchant can compete with a giant if they offer impeccable service, a relevant selection, and an authentic relationship.
Your personal brand, your story, and your expertise are assets that major players struggle to replicate. Capitalize on these differences to build customer loyalty and stand out in a landscape where everyone sells a bit of everything.
Why are manufacturers now selling directly?
The barrier to entry for e-commerce is so low that many manufacturers have started selling directly to consumers. This is the case for Danner Footwear, which sells both wholesale to retailers and directly on its website. The same supplier can therefore be both your partner and your competitor.
This situation, already visible in 2016, has intensified. Manufacturers understand that they can capture part of the middlemen's margin by selling directly. They are investing in their own online stores, often with competitive prices.
For a merchant, this requires strategic thinking. If you depend on a supplier who also sells directly, you must justify your existence with added value: advice, after-sales service, selection, or simply a superior buying experience.
What strategies should be adopted in the face of this convergence?
Faced with this blurring of roles, the first strategy is to clarify your positioning. Are you a brand, a retailer, or a bit of both? This decision influences your marketing approach, your product selection, and your relationship with your suppliers.
The second strategy is to diversify your sourcing. If a supplier becomes a direct competitor, you need to have alternatives. This can involve developing your own brand, or looking for partners who do not sell directly.
Finally, focus on what you control: the customer relationship. In a world where everyone sells the same products, the difference is made on service, trust, and experience. This is your best defense against convergence.
What opportunities does convergence offer to small brands?
Convergence is not just a threat. For small brands, it opens up opportunities. For example, you can sell wholesale to retailers looking to diversify their offering, while maintaining your direct channel. This is a way to multiply touchpoints with your customers.
You can also partner with other brands to create co-branded products, as farm supply store chains did with Wildology. These partnerships allow for pooling costs and benefiting from each other's brand awareness.
The key is to remain flexible and adapt your model as the market evolves. What works today may not work tomorrow. The ability to pivot is a major asset in a changing environment.
What role does technology play in this convergence?
Technology is the driving force behind this convergence. Site-building, order management, and marketing tools have significantly lowered the barriers to entry. A manufacturer can launch an online store in a few days, without any particular technical skills.
Platforms like Shopify have democratized access to e-commerce. Marketplaces like Amazon offer an additional distribution channel. Social networks make it possible to reach consumers directly. All of these tools bring key players closer together.
For a merchant, technology is also a way to stand out. By using tools for product recommendation, personalization, or order tracking, you can offer an experience that traditional players struggle to match. It is a profitable investment.
How do you prepare your business for this new reality?
The first thing to do is to audit your current positioning. Who are your direct competitors? Do your suppliers sell directly? Do your customers perceive you as a brand or as a reseller? These answers will guide your strategy.
Next, diversify your sales channels. If you only sell on your website, consider other outlets: marketplaces, wholesale, pop-up stores. This diversification protects you if one channel turns against you.
Finally, invest in customer relationships. In a convergent world, loyalty is your best shield. A customer who trusts you will not leave for a competitor for a difference of a few euros. Cultivate this trust with every interaction.
How can Qstomy help you take advantage of this development?
Qstomy, as an AI agent for Shopify merchants, helps you turn this convergence into an opportunity. Designed to guide your customers towards making a purchase, it relies on product recommendations, upselling, and cross-selling to increase your average basket size, even when facing larger competitors.
Concretely, Qstomy analyzes your customers' purchase history to offer relevant recommendations, just like an experienced salesperson would. It also handles parcel tracking and after-sales service, freeing up time for you to focus on your strategy. More than 100 merchants are already using it to improve their conversion rates.
In an environment where experience makes the difference, Qstomy gives you the means to offer a seamless and personalized customer journey. It is a practical lever to build customer loyalty and withstand the pressure from converging players.
In short: key points to remember
At a glance
The convergence between retailers, brands, and manufacturers is a lasting reality. To thrive, focus on your added value: customer relationship, product selection, and the buying experience.
Checklist before you start
Audit: identify your direct and indirect competitors, including your suppliers.
Positioning: clarify whether you are a brand, a retailer, or both.
Diversification: explore sales channels other than your own website.
Experience: invest in customer service and personalization.
Technology: use tools like Qstomy to automate and improve the experience.
FAQ
Should I stop selling products from brands that also sell directly? No, but you must justify your added value through service, advice, or selection.
How do I know if a supplier is also a competitor? Visit their website and see if they offer direct-to-consumer sales.
Will convergence stop? There is no indication of that. The trend is structural and is expected to continue in the coming years.
To go further: What e-commerce strategy for a small brand under $100,000/month? - Qstomy, SEO for e-commerce sites: strategies that really work - Qstomy, Which e-commerce platform to choose for a small business? - Qstomy, Can you sell Amazon products on Shopify? - Qstomy, E-commerce SEO: the guide to ranking better and selling - Qstomy, What e-commerce marketing strategy with no ad budget? - Qstomy, How to scale an e-commerce brand from 0 to 7 figures? - Qstomy.
Enzo
September 17, 2026
