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  • 2 years ago
Channel Choice — Wholesale v. Online Tradeoffs

Channel Choice — Wholesale v. Online Tradeoffs

Selling direct-to-consumer allows the human scale business to retain healthy margins to reinvest in the business, while selling wholesale to other retailers requires you to lower margins, creating room for the retailer’s markup, often double your wholesale price. In essence, you are paying the retailer to manage the marketing, logistics, and transactions for you. In addition to pros and cons, there are other dimensions of channel choice worth considering, Dave Bayless says. I spoke with him about elements of channel choice.
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