It’s not 2016 anymore. DTC isn’t the golden ticket, and wholesale isn’t just for legacy brands.
The truth? Most CPG companies need both — but not in equal measure. And the right blend depends on your product, your cash flow, and how fast you want to scale.
If you're still trying to “pick a lane,” this post is for you.
The Case for Wholesale
Wholesale gets you:
Volume and reach — one PO can put you in 20+ doors
Predictable reorders — buyers plan resets, not algorithms
Third-party validation — shelf space = trust
Efficient logistics — less pick/pack/ship chaos
But here’s the tradeoff:
Lower margins
Longer sales cycle
Retailers control the customer experience
You win at wholesale when you understand the buyer’s world — and when you support your product after it hits the shelf.
The Case for DTC
DTC gives you:
Higher margins (usually)
Direct access to your customers
Control over brand and experience
Faster feedback loops on messaging, price, positioning
But it comes with hidden costs:
Paid ads aren’t cheap
Managing fulfillment, returns, and customer service can eat your team alive
Scaling past $100k/month takes serious ops
DTC is where you prove your message, test demand, and own the story. But very few brands grow past early traction without wholesale.
Why the Smartest Brands Build Both — in the Right Order
Here’s what we’ve seen work best for emerging brands:
1. Start DTC to prove demand
→ Validate your product, test offers, and gather real customer language
→ Use that data to inform your retail pitch
2. Layer in strategic wholesale accounts
→ Target stores where your customer is already shopping
→ Focus on velocity, not just placement
→ Build relationships with buyers, not just one-off sales
3. Use DTC to support sell-through
→ Retarget ads to customers near retail doors
→ Use your email list to drive in-store traffic
→ Let wholesale sales fund broader brand awareness
So… What’s the “Right” Ratio?
It depends. But here’s a starting point:
StageWholesaleDTCMVP / Pilot10%90%Scaling to $500K40%60%Growth mode ($1M+)60–70%30–40%
Your real ratio will depend on:
Cash runway
Category (refrigerated vs shelf-stable, premium vs impulse)
Logistics infrastructure
Your team’s strengths
What Most Founders Get Wrong
They launch too wide too early — before they’re ready to support sell-through
They ignore wholesale because DTC feels easier to control
They treat DTC like a revenue engine, when it's often better as a feedback tool
They chase accounts instead of building a focused channel strategy
Want to Get Your Mix Right?
We help brands clarify channel strategy, design sales systems, and launch both DTC and wholesale channels with purpose — not panic.
