Hershey E-Commerce and Direct-to-Consumer Sales
Meta Description: Explore how Hershey is transforming e-commerce and direct-to-consumer sales for the future of the confectionery industry in 2025—major trends, innovations, and strategic insights included.
The future of the confectionery industry in 2025 is being rewritten by major players like Hershey, who are rapidly adapting to digital transformation. Hershey isn’t just the name behind some of America’s most beloved chocolate bars—it’s a case study in how iconic consumer brands can pivot to thriving e-commerce and direct-to-consumer (DTC) strategies. As shopping habits shift online, Hershey’s investments and innovations reveal powerful lessons and predictions for the entire sector.
As more consumers pivot from brick-and-mortar to online grocery shopping, Hershey recognizes the digital shelf is just as crucial as the physical one. In today’s marketplace, “securing the top search result online is the equivalent of getting its candy prominently placed on shelves.” The digital shopping journey mimics the physical in key ways—there’s still a “shelf,” a “basket,” and “checkout”—but now it all happens on shoppers’ phones.
Hershey has integrated digital commerce into the core of its marketing and sales teams. By leveraging first-party data gathered via its DTC initiatives, Hershey is able to deliver tailored messages, personalized recommendations (e.g., popping up suggestions when consumers aren’t hitting free shipping minimums), and one-click recipe ingredient bundles. This personalization not only attracts new buyers but increases loyalty and average order value.
Traditional in-store impulse buys—grabbing a Reese's at checkout—now have online analogs. Hershey’s research shows that while individual bar sales are less likely online, shoppers purchase in bulk or variety packs. Digital shopping experiences often lead to increased cart sizes and higher quantities of items purchased.
A unique challenge for Hershey is that chocolate is a temperature-sensitive product, often going “dark” online during summer due to melting concerns. To overcome this challenge, Hershey launched chilled drop-shipping and a 'worry-free summer shipping' initiative, ensuring steady e-commerce growth all year long.
Hershey’s creation of a centralized direct-to-consumer website on Salesforce Commerce Cloud harnesses powerful analytics, elevates the customer experience, and offers intuitive navigation tailored for both gift buyers and everyday shoppers. This creates a seamless journey that guides customers effortlessly from product discovery to final purchase.
Hershey uses AI-driven recommendations and retargets its customers with offers they’re most likely to respond to—suggesting replenishments, curating combo deals, and using shopper history to fuel “Buy Again” lists. These tactics drive repeat business and higher order values.
Modern consumers shop across multiple devices and expect cohesive brand experiences. Hershey’s DTC site harmonizes all of its brands within a single digital ecosystem, ensuring affinity and consistency.
Recognizing that the majority of e-commerce traffic is mobile, Hershey optimizes its website, marketing messaging, and checkout experience for smartphones and tablets.
Chocolate’s tendency to melt in hot climates presented a major barrier. By innovating with temperature-controlled logistics and “chilled” shipping, Hershey made year-round DTC sales feasible.
Unlike the physical checkout aisle, where Hershey’s classic brands “sell themselves,” online platforms demand a fight for visibility. Hershey raised its game through search engine optimization, digital shelf placement, and partnerships with e-tailers.
Impulse is central to candy sales. Hershey replicates this with targeted pop-ups, cart suggestions, and digital bundling, capturing both the spontaneous and planned purchase moments.
To keep up, Hershey reorganized internally, integrating digital-minded employees directly into sales, marketing, and CX teams—ensuring that “digital is fundamental to our DNA”.
Digital sales up 60% in recent quarters.
Online market share up 1.8%.
Orders surged 98% and sales 105% year-over-year after DTC site relaunch.
Online baskets are 1 to 3.5X larger than physical store baskets.
Transition to year-round online sales enabled by innovative shipping protocols.
These numbers evidence a transformative ROI from Hershey's digital investments.
Executives expect that U.S. e-commerce for consumables—currently about 2%—will trend toward 5–7% of total sales in the next three to four years.
“Digital will be fundamental to our DNA going forward,” says Hershey’s Chief Digital Commerce Officer Doug Straton. Experts see branded DTC as critical for building first-party data, enhancing customer experience, and launching limited editions or seasonal products quickly.
As the distinction between everyday and “gift” purchases blurs, Hershey’s larger, pack-focused online bundles are replacing the single-bar impulse buy of grocery aisles. This format will likely continue to dominate online channels.
Hershey’s omnichannel strategy includes BOPIS, which provides cost and choice advantages for online buyers. Collaboration with retail giants helps Hershey ensure both digital and in-store sales reinforce each other.
Embrace Omnichannel:
Modern shoppers expect a cohesive and effortless transition from browsing online to making purchases in-store. Coordinate inventory, marketing efforts, and promotional strategies across both physical and digital channels.
Capture First-Party Data:
Take a cue from Hershey by leveraging direct-to-consumer channels to collect
Innovate with Shipping:
If you sell perishables or temperature-sensitive products, invest in advanced logistics—climate-controlled shipping can unlock new markets.
Personalize at Scale:
Digital tools allow surface-level and deep recommendations, driving conversion and loyalty.
Invest in Technology:
Build unified commerce platforms that give your users frictionless, cross-device, and mobile-first experiences.
Review 1: Supply Chain Dive
Supply Chain Dive lauded Hershey’s holistic view of e-commerce, noting the strategic acquisition of digital talent and a “symbiotic” approach where e-commerce fuels in-store sales and vice versa. Operational innovation—like “worry-free summer shipping”—was highlighted as a turning point, removing traditional seasonal constraints.
Review 2: Grocery Dive
Grocery Dive praised Hershey’s prioritization of digital, especially as new shopping habits emerge. The publication pointed out Hershey’s “data-driven targeted advertising” and smart website features (reload cart, buy-all-ingredients recipes), all increasing convenience and cart size for online shoppers.
Review 3: Merkle (Case Study)
Merkle’s case study showcased Hershey’s shift to DTC, citing comprehensive “persona-based” marketing, technology roadmaps, and harmony between multiple brand identities on a single platform. The study reported impressive double-digit growth in orders and sales, affirming that deep investment in digital CX can deliver immediate results.
Other brands can learn several actionable lessons from Hershey’s approach to e-commerce and direct-to-consumer (DTC) growth:
1. Integrate Digital Teams into Core Operations
Hershey broke down silos by embedding digital-focused employees directly into their sales and marketing teams. This cross-functional structure accelerates project execution and fosters a culture grounded in data and agility. Brands should consider reshaping their organizational structures to make digital expertise central rather than peripheral.
2. Rethink Product Strategies for Online Channels
Instead of simply shifting existing products online, Hershey reimagined its offerings—creating online-only value packs that align with how consumers buy on the web (e.g., in bulk, for gifting, or with bundles). This approach led to more repeat purchases and higher average orders. Other brands can benefit by adapting pack sizes, subscription models, or exclusive SKUs for digital shoppers.
3. Bridge the Gap Between Online and Offline Experiences
Hershey sees the consumer journey as a seamless omnichannel experience, rather than dividing it into distinct online and in-store interactions. By ensuring consistency in product visibility, messaging, and promotions across all platforms, they create a seamless customer experience. Brands can replicate this by synchronizing their digital and physical marketing, making sure their “digital shelf” is as compelling and true-to-brand as the one in-store.
4. Leverage Data to Build Relationships and Drive Personalization
A core pillar of Hershey’s success is collecting and using first-party data via DTC to better understand and target consumers. This enables smarter advertising, personalized recommendations (e.g., reminders based on past purchases), and agile marketing. Other brands should prioritize data acquisition through their DTC channels to inform decisions and fuel loyalty programs.
5. Invest in Customer Experience and Technology
Hershey developed a robust, user-friendly DTC website with features like easy reordering, gifting options, and buy-all-ingredients recipes. Every brand touchpoint is optimized for convenience and engagement. Brands can learn from this by investing in intuitive platforms, optimizing for mobile, and eliminating friction from the path to purchase.
6. Innovate Logistics to Overcome Category Challenges
To tackle the challenge of shipping melt-prone chocolate, Hershey invested in climate-controlled
logistics and adapted its shipping strategies to suit seasonal conditions. Brands facing operational barriers online should innovate solutions that unlock year-round e-commerce potential.
7. Grow Community and Content, Not Just Transactions
Hershey bolsters its direct website with rich content (like recipes and gifting ideas), fostering a community that encourages repeat visits. Brands can use content to deepen relationships, not only to drive immediate sales but to build lasting brand engagement.
8. Focus on Omnichannel Insights
Hershey does not treat DTC and retail as silos—insights from one reinforce growth in the other. Brands should use data and learnings from digital channels to enhance their in-store strategies and vice versa, creating a feedback loop for continuous improvement.
Key Takeaway:
By blending agile, digitally-integrated teams, data-driven marketing, superior CX, and tailored online offerings, Hershey has crafted a blueprint that any consumer brand can adapt for thriving in the future of e-commerce and DTC sales.
Would you like specific examples of how brands in your sector can implement these strategies, or more detail on Hershey’s technology stack? Let us know in the comments—share your thoughts or subscribe for future insights!
Hershey’s digital evolution serves as a blueprint for the future of the confectionery industry in 2025.
Hershey broke through persistent obstacles to scalable, year-round e-commerce by
First-party data from DTC channels is pivotal for targeted marketing, operational efficiency, and new product launches.
The online “impulse buy” is alive and well—it just looks different. Bulk and bundled purchases are becoming the new norm online.
Staying ahead requires ongoing evolution—across both technology and organizational
Q1: What makes e-commerce a top priority for Hershey today?
A: As consumer habits shift online, Hershey’s e-commerce and DTC strategies ensure continued brand visibility, customer loyalty, and growth—even as traditional retail impulse sales ebb.
Q2: How does Hershey ship chocolate during hot months?
A: Hershey employs temperature-controlled, chilled drop shipping to keep chocolate fresh during transit, effectively eliminating the common melting issue and supporting direct-to-consumer sales throughout the year.
Q3: Do customers typically spend more per order online than in physical stores?
A: Yes. Hershey reports 1–3.5X larger basket sizes online compared to brick-and-mortar stores, mainly due to bulk purchases and bundled deals.
Q4: What role does data play in Hershey’s e-commerce success?
A: First-party data from DTC channels enables personalized communications, smarter marketing, and continuous optimization of the online shopping experience.
Q5: Is the direct-to-consumer model expected to expand in the coming years?
A: Absolutely. Hershey and industry experts predict significant ongoing growth in DTC and e-commerce, with more brands seeking stronger relationships and data directly with their consumers.
“Online trips are driving bigger baskets. At one time, there was a general concern in the industry that impulse buys would be limited by online shopping. Today, the opposite is proving true. … Hershey is accommodating that by offering larger pack sizes with more diverse offerings in a single pack.”
— Doug Straton, Chief Digital Commerce Officer, Hershey
Are you a brand, business leader, or candy lover interested in the future of the confectionery industry in 2025?
Leave a comment below with your predictions, share this post with your colleagues, or subscribe to our newsletter for the latest insights on digital commerce, DTC trends, and supply chain innovations. Get ready for a sweeter, smarter, and more connected future—together!
Comments
Post a Comment