AI to Drive New Marketing Channels and Cost Savings for DTC, Inventory Management Remains a Hurdle

Artificial intelligence (AI) is poised to revolutionize direct-to-consumer (DTC) businesses by opening new marketing avenues, particularly through "agentic commerce," and significantly reducing labor costs, according to Jacob Posel, a prominent voice in AI and DTC. However, the critical challenge of managing the cost of goods sold (COGS) and inventory forecasting remains largely unresolved.

"There are some opportunities. AI will allow DTC businesses to operate in new and marketing channels (agentic commerce) and cut labor costs. COGS is still not a solved problem. I haven't met someone who forecasts or buys inventory well," stated Jacob Posel on social media.

Agentic commerce, a rapidly emerging paradigm, involves intelligent AI agents autonomously performing shopping tasks on behalf of consumers. These AI agents can interpret user requests, adapt to context, conduct research across multiple platforms, compare prices, and even complete purchases with minimal human intervention. Major players like Mastercard and Visa are already developing infrastructure, such as Agent Pay and Intelligent Commerce, to facilitate secure transactions by these AI agents.

This shift promises enhanced customer experiences through hyper-personalization and frictionless purchasing, potentially driving significant sales growth. AI agents leverage memory to recall user preferences, utilize tools like APIs for information gathering, and employ reasoning to break down complex requests into actionable steps. Experts predict agentic commerce could account for nearly $9 trillion in global online spending by 2030.

Beyond new marketing channels, AI is also expected to contribute to labor cost reduction within DTC operations. By automating routine and complex tasks, AI tools can boost productivity and efficiency, allowing human teams to focus on higher-value activities. This augmentation of human capabilities, rather than outright replacement, is a key focus for AI integration in business.

Despite these advancements, the effective management of COGS and inventory forecasting continues to be a significant hurdle for DTC businesses. Posel's observation highlights a persistent gap in the application of AI, where even with sophisticated tools, accurate prediction and procurement of inventory remain elusive. This area presents a critical opportunity for further AI development and implementation to optimize supply chains and financial performance.