Before You Go Wholesale

As growth slows, our first instinct is to add a new channel.

Adding channels increases complexity, though, and that complexity can slow you down and weaken the business that was actually working. Every new channel comes with its own margin structure, inventory requirements, pricing rules, and operational demands.

Here's what I've learned: treat each channel like a second business model. If you treat it like a distribution hack, it will cost you.

Wholesale is harder than it looks

Most brands jump too early. They add Amazon, wholesale, and TikTok Shop all at once. Then they wonder why the DTC engine slows down.

Wholesale is the highest risk and most costly. It has different pricing rules, packaging requirements, inventory demands, margin expectations, and operational cadence. It's a cash flow and ops test. Terms, chargebacks, co-op fees, forecast accuracy. All of it lands on your team.

When you do move to wholesale, here are a few tips.

Keep a tight SKU set, hold price, and focus on placement and POP in store. Keep your activation lightweight and executable. Great placement matters more than fancy programs. Know where you want to be in store and ask for it.

Avoid distributors early on. You lose control, visibility, and margin. Skip online "tests" with retailers too. Those channels cannibalize DTC, create pricing headaches, and rarely lead to in store placement.

Don't chase big box too early. You get one bite at the apple, so make sure you can follow through on what you promise. Deals fall through all the time and a verbal commit means nothing.

Watch your accounts receivable. Be careful who you sell into. Wholesale ties up cash in ways DTC doesn't.

And across all of it: hold price. Omnichannel breaks when price breaks. Hold MSRP, enforce MAP from day one, use promos with intent. If a partner won't respect your pricing rules, choose a different partner.

The bottom line

Go omnichannel, just do it intentionally. It's a grind, and you'll have to stay patient.

The best time to expand is when DTC is healthy enough to fund the learning curve and stable enough to survive the distraction.

P.S. Before you expand, ask yourself: if this new channel takes twice as long and costs twice as much as you're planning, does the math still work?