Factory direct is a term used to explain when a manufacturer sells directly to the end-user of a product. From the term itself, the consumer himself goes to the place where the product is produced or manufactured. In the case of factory direct furniture, the consumer goes to the factory of the furniture. Factory direct furniture is sometimes displayed for walk-in customers in the factory’s warehouse, where newly produced furniture is rolled out and displayed.
Most products bought and sold by consumers are purchased through intermediaries and in many cases can include two tiers made up of distributors and resellers. With furniture, it’s also the same. Each selling tier adds cost to the furniture, as more hands are involved the price of the furniture goes higher. Hence, some will go for factory direct furniture, to eliminate some of the costs hereby effectively getting good markdowns in the price. Used to be, many manufacturers of furniture couldn’t offer factory-direct furniture because of their inability to service and support end-users and make use of distribution channels. The internet and ecommerce helped solve this problem, allowing manufacturers to offer their services as well as advertise to consumers how to get factory direct furniture, how to order from them.