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.
1Product Base
2Wholesale Channel Costs
Enter 0 if direct
Faire, Ankorstore, etc.
3DTC Channel Costs
Per order acquired
Pick, pack, ship
Shopify, processing
Avg DTC return rate
-
Before channel costs
-
After all DTC costs
Margin Gap - DTC Net vs WS Net - percentage point difference
Wholesale Margin Bridge
Revenue / unit -
− COGS -
− Rep commission -
− Platform fee -
− Returns/allowance -
WS Net Contribution / unit -
WS Net Margin -
DTC Margin Bridge
Revenue / unit -
− COGS -
− CAC -
− Fulfillment -
− Platform fee -
− Returns -
DTC Net Contribution / unit -
DTC Net Margin -
Channel Summary
Channel
Gross Margin
Net Margin
Net $/unit
P23-EDU · TWENTY3 IntelligenceChannel Tool 12·DTC vs Wholesale Margin Bridge·True Net Contribution After All Channel Costs·CAC · Fulfillment · Platform · Returns·P23-EDU · TWENTY3 IntelligenceChannel Tool 12·DTC vs Wholesale Margin Bridge·True Net Contribution After All Channel Costs·