Channel Tool 12

DTC vs Wholesale.
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.

1Product Base

Unit COGS ($)

Wholesale Price ($)

MSRP / DTC Price ($)

2Wholesale Channel Costs

Rep Commission (%)

Enter 0 if direct

Platform/Marketplace Fee (%)

Faire, Ankorstore, etc.

WS Returns/Allowances (%)

3DTC Channel Costs

CAC, Paid ($)

Per order acquired

Fulfillment ($)

Pick, pack, ship

Platform Fee (%)

Shopify, processing

DTC Returns (%)

Avg DTC return rate

DTC Gross Margin (%)

Before channel costs

DTC Net Contribution (%)

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

DTC vs Wholesale.The margin bridge nobody draws for you.

DTC vs Wholesale.
The margin bridge nobody draws for you.