DTC vs Wholesale Comparison
True gross margin comparison between DTC and wholesale after stripping out the cost of selling direct: CAC, fulfillment, platform fees, and returns. The headline DTC margin is usually a fiction.
The margin bridge nobody draws for you
True gross margin comparison between DTC and wholesale after stripping out the cost of selling direct: CAC, fulfillment, platform fees, and returns. The headline DTC margin is usually a fiction.
The DTC gross headline margin is misleading: it is measured before CAC, fulfillment, platform fees and returns.
How each bridge is built
- Wholesale net = wholesale price - COGS - rep commission - platform fee - returns and allowances (each % of wholesale price).
- DTC net = DTC price - COGS - paid CAC per order - fulfillment - platform fee - returns (fees and returns as % of DTC price).
- The gap is DTC net margin minus wholesale net margin, in percentage points.
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