Supply chain insights for DTC brands
Practical, specific explainers on where ecommerce supply chains lose money and how to fix it. Written by operators who run a DTC supply chain today.
Landed cost vs total cost of ownership
Landed cost tells you what a unit cost to get to your shelf. Total cost of ownership tells you what it cost to own it until it sold. Choose suppliers on the second.
How to select a 3PL in the US, and what to look for
Choosing a 3PL is one of the most expensive decisions a DTC brand makes, and one of the hardest to undo. Here's how to get it right the first time.
FOB vs DDP: which terms should a DTC brand buy on?
FOB and DDP sit at opposite ends of the Incoterms. One gives you control and visibility, the other gives you simplicity. Most growing brands should move from one to the other.
Unit economics and contribution margin for DTC brands
Gross margin tells you whether a product is worth making. Contribution margin tells you whether each order is worth taking. Most DTC brands track the first and guess at the second.
Strategic sourcing and supply risk management for DTC brands
Most DTC brands find a supplier, place an order and keep reordering until something goes wrong. Strategic sourcing is deciding in advance what you'll do when it does.
Why payment terms matter as much as price: supplier terms and cash flow
A profitable DTC brand can still run out of cash. The usual cause isn't margin, it's timing: paying for inventory months before it turns into revenue.
Where money leaks in 3PL invoices
Most DTC brands check the total on their 3PL invoice and nothing else. A bill that creeps up 15% in a year rarely does it through one big change. It does it through small leaks nobody reads.
Dimensional weight explained: why your parcel rates are higher than you think
If you ship light, bulky products, there's a good chance you're paying to ship air. Dimensional weight is the reason, and it's one of the easiest costs to cut.
Safety stock and reorder points for DTC brands, with a worked example
Stockouts kill growth and overstock kills cash. Safety stock and reorder points are how you stop guessing between the two, and the maths is simpler than most brands think.
HTS codes and duty: how DTC brands overpay on customs
Two importers can bring in the same product and pay different duty. The difference is usually classification and valuation, and both are worth checking.