Contrary to common belief for online-native brands, Peak Design's own retail stores have the highest contribution margin. This is because shipping products in bulk freight to stores is cheaper than covering the high last-mile delivery costs for individual e-commerce orders, which often qualify for free shipping.

Numi initially used a wholesale model but found it ineffective. They were relying on third-party retail staff to explain a new product category and address the social stigma around sweating. Shifting to direct-to-consumer (DTC) allowed them to control the narrative, educate customers directly, and grow 300%.

Despite the prestige, the company scaled back partnerships with major retailers like Nordstrom. When the stores began demanding greater margin cuts and costly program participation, the relationship no longer felt like a true partnership, and the brand chose to protect its profitability and well-being.

For D2C fashion brands, the inability of third-party suppliers to quickly fulfill reorders on trending products is a key trigger for vertical integration. Larroudé's co-founder realized the cost of one large factory order was equivalent to buying the machinery himself, enabling them to meet demand in weeks, not months.

For his second book, author Ramli John drove 77% of sales directly, bypassing Amazon. While Amazon offers volume, direct sales provide higher margins and, more importantly, invaluable customer data (like emails) that enables direct communication, feedback loops, and long-term community building.

While scaling a proven system is usually the right move, there's an exception. If a new customer segment offers exponentially higher order values for the same fulfillment effort, the potential leverage justifies risking a new acquisition channel.

The allure of massive distribution at a mass-market retailer like Walmart is a trap. It establishes the lowest possible price point for your product, which every subsequent retail partner will use as a benchmark, limiting your brand's long-term profitability and pricing power.

Platforms like Shopify have enabled small businesses to have faster, higher-converting, and more technically performant online stores than many large, established brands running on clunky, homegrown legacy systems.

To fund crucial investments in wages, prices, and e-commerce, Walmart's leadership, with board support, intentionally reduced its operating income from over 6% to just over 4%. This shareholder-funded investment was a deliberate, multi-year strategy to future-proof the business.