Discover how retailers can stay competitive in a post-tariff, DTC-driven market by leveraging affiliate partnerships, local fulfilment, and customer-first strategies to drive loyalty and growth.
If you’re up to date on global news, you’re probably aware of the tariffs being implemented as part of the new “America First” trade policy in the United States.
To make a long story short, these tariffs are expected to impact consumer costs globally and test relationships with key trading partners. However, while the markets are in a state of flux, some interesting tactics have already started to emerge that could significantly impact the retail landscape as we know it.
One such tactic by Chinese manufacturers is taking social media by storm.
The now viral approach has seen manufacturers post videos designed to educate consumers on how they can buy directly from the manufacturers, cutting out the middleman (i.e., the retailer), and getting many items at wholesale or cost-price.
In an interesting twist, these videos posted by the manufacturers have also started to adopt further marketing fundamentals by telling the story of the whole production process, quality of goods, and cost of production. This direct-to-consumer (DTC) marketing has resulted in many consumers praising the manufacturers for their transparency around material/labour costs and exposing pricing markups.
What Does This Mean for Australian Brands?
So, what can retailers do to tackle these growing DTC tactics? The strategies below have successfully optimised the user journey to benefit brands, affiliates, and consumers, helping retailers effectively compete with the rise of DTC models.
With the right eCommerce solutions and partners by your side, you can confidently navigate the evolving purchasing landscape. At Commission Factory, we combine powerful tech with hands-on support, giving our clients everything they need to not just stay competitive but achieve real, measurable growth in today’s economy.
Blend Digital and Physical Touchpoints
Having a seamless omnichannel experience is vital for ensuring your customers enjoy their shopping experience. We recommend creating a unified brand experience across physical stores, marketplaces, and online platforms to lead your customers smoothly from discovery through to checkout.
Another key to your customers’ hearts is using retail locations as fulfilment hubs for click-and-collect, exchanges, and returns to outpace DTC delivery limitations. In a world of instant gratification, much of your consumer base is accustomed to not having to wait 4+ weeks for a product to be delivered from overseas. Highlighting your local supply chain and fast delivery can motivate customers to pay a premium for the convenience of receiving their orders sooner.
Differentiate Through Value-Added Retailing
Offering exclusive bundles, loyalty rewards, or personalised services is an easy and effective way to enhance your customer experience, as DTC brands often can’t match at scale.
Commission Factory works with several integration partners via the Integrations Marketplace that can help brands get set up with tech solutions such as product bundling, reward and loyalty programs, referral marketing and more. All these strategies can help immerse your customers in your onsite experience.
Another way to compete with DTC is by enhancing post-purchase value—think VIP service, hassle-free returns, or standout in-store experiences. For example, you can offer vouchers for an in-store service, such as makeup application, when a customer spends a certain amount in-store.
Invest in Affiliate and Influencer Channels
It’s no secret that the more your brand appears across different channels, the more likely consumers are to engage with it and potentially purchase. Brands can leverage affiliate marketing to drive targeted traffic and awareness beyond their own media. Some examples of affiliate partnerships that can motivate purchases from the brand over the manufacturer include loyalty, cashback, and influencers.
- Loyalty and Cashback Programs: Loyalty and cashback affiliates are key drivers for many advertisers’ affiliate program revenue in Australia. These programs offer consumers incentives such as money back or points, enhancing the attractiveness of affiliate marketing channels.1
- Influencer Impact: With the rise of DTC, building consumer trust will be your greatest strength. Over half (52%) of Australians aged 18–29 are more likely to purchase products promoted by influencers, indicating the significant role of affiliate marketing in shaping purchasing decisions among younger demographics2. Build long-term relationships with content creators to showcase your brand’s value over DTC alternatives.
Commission Factory offers several tools and strategies to help brands recruit and connect with affiliate partners that suit their brand identity, program goals and target demographic. If you’re unsure about where to start, you can opt for our Recruitment Package, a short-term strategy with long-term benefits, or a Service Plan with a dedicated account manager to continually recruit, manage and optimise your affiliates for you.
Use Data to Personalise the Experience
Maintaining a compliant and privacy-first policy to protect your consumer data is key. We recommend collecting first-party data (compliantly, of course) across your channels to compete with DTC’s customer intimacy.
Create personalised messaging to encourage your audience to engage and build trust. Implement targeted campaigns, upsells, or loyalty programs based on behaviour, location, or purchase history to inspire new and future customers.
Highlight Ethical and Local Advantages
If you manufacture locally or use ethical sourcing, lead with transparency—values increasingly drive consumers. Approximately 31% of online shoppers in Australia express an intention to purchase Australian-made products from retailers3. This preference suggests a shift toward supporting local manufacturers and possibly engaging in direct purchasing to ensure authenticity and quality.
Customers want to feel seen and heard, so it’s probably safe to assume that they would love to see and hear from your brand, too. Share supply chain stories or behind-the-scenes content that shows brand depth and quality.
Co-create With Retailers or Consumers
One powerful way to excite customers and compete with DTC brands is by launching limited-edition drops or exclusive releases. These create a sense of urgency, spark FOMO (fear of missing out), and give your brand an edge through scarcity and uniqueness. Collaborations—whether with artists, influencers, or even other retailers—can amplify this effect and drive deeper community engagement, both online and in-store.
Beyond product drops, consider tapping into the strength of your existing brand advocates. If you’ve built a loyal community that actively engages with and promotes your brand, invite them into the product development or testing process. Give them early access, ask for feedback, or co-create designs. Not only does this deepen their connection with your brand, but it also generates buzz and trust, as customers feel personally invested in what they helped shape. This is something DTC brands often do well, but your advantage lies in doing it at scale, across both digital and physical channels.
Final Thoughts
Rising tariffs and global supply chain shifts have opened consumers’ eyes to the true cost of goods—fuelling a movement toward direct purchasing and price transparency.
While DTC brands are quick to capitalise on this shift, retailers and brands can respond with equal agility. By investing in a flexible affiliate marketing platform, seamless customer experiences, and community-driven strategies, brands can meet this new wave of value-driven, informed shoppers head-on. The playing field is changing—but with the right strategies, you can not only compete, but win.
Commission Factory is not only the Asia-Pacific region's largest affiliate platform, working with more than 900 of the world's biggest brands, it is also a performance marketing platform that allows affiliates, partners and content creators to earn money and online businesses to increase sales.
Connect with the Commission Factory team to learn more about how we help brands and partners build and grow their affiliate marketing strategies.
References
1 IAB Affiliate Marketing Industry Review
2 https://sproutsocial.com/insights/influencer-marketing-stats-australia
3 https://auspost.com.au/content/dam/auspost_corp/media/documents/ecommerce-industry-report-2023.pdf