Pricing on DTC math
Wholesale takes about half of retail before freight and deductions. Run the PO through the wholesale margin calculator before accepting it.
Retailer readiness
Getting a consumer brand ready to ship a big retailer
Before a big retailer’s first purchase order ships, a brand needs item setup approved, GS1 barcodes and case packs that match, EDI running, an advance ship notice sent on time, carton labels placed to spec, and a delivery appointment. Each retailer publishes its own routing guide, and every miss comes back as a deduction.
| Step | What it means | What a miss costs |
|---|---|---|
| Item setup | Every SKU loaded in the retailer’s system with dimensions, case pack, and barcode that match the physical carton. | The PO cannot be received, or the order is short-shipped. |
| GS1 barcodes | Real GS1 company prefix, UPC per selling unit, GTIN-14 on cases. | Scan failures at the DC and a deduction per carton. |
| EDI | Purchase order, ship notice, and invoice flowing through an EDI provider, tested before the season. | Manual entry, late invoices, and slow payment. |
| Advance ship notice | The ASN sent when the truck leaves, matching what is actually on it. | A no-ASN deduction and a delayed receipt. |
| Carton labels | Label format and placement exactly as the routing guide specifies. | Per-carton charges that can exceed the margin on the order. |
| Appointment and window | A delivery appointment inside the retailer’s ship window, with the right carrier. | Late-delivery deductions and a lower vendor score. |
Requirements and deduction schedules change. Always work from the retailer’s current routing guide in their vendor portal, not from a blog post, including this one.
Three mistakes that turn a win into a loss.
Forecasting the launch, not the reorder
The first order is planned carefully and the replenishment is not, so the brand stocks out during its best sell-through weeks.
Nobody owns the deductions
Chargebacks arrive by reason code on a remittance. If no one reads them monthly, the same mistake gets billed all year.