++++ Plate 00 · Wholesale vs DTCCalculator
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What do you really keep per unit: wholesale or DTC?

Keystone pricing hands the retailer half your retail price, then chargebacks and deductions take another 1 to 5% of the invoice. But DTC carries its own costs on every order: fulfilment, shipping, fees, and marketing. Enter one product's numbers and see what each channel actually keeps per unit, and the volume wholesale needs to bring to make the trade worth it.

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By Taylor Sicard · co-founded WIN Brands Group and scaled it past $100M · brands sold through DTC, wholesale, and retail, with the per-unit math to show for it
The method behind the number
Keystone, chargebacks, and the channel decision underneath.
Consumer Commerce
The wholesale margin math
Keystone pricing, chargebacks, and a worked example of what wholesale really keeps vs DTC.
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Consumer Commerce
Distribution strategy for DTC
When wholesale, marketplaces, and retail earn a place in the mix, and when they just rent your margin.
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Consumer Commerce
Contribution margin per order
The DTC side of this comparison: what each order really contributes after every variable cost.
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Method

How the channel comparison is calculated

Two per-unit contributions, side by side. The DTC leg: retail price minus landed cost, minus DTC variable costs (pick-pack, shipping, and payment fees as a share of retail), minus your blended marketing cost per order. The wholesale leg: the wholesale price (a percent of retail, keystone standard is 50%) minus the same landed cost, minus chargebacks and deductions on the invoice (typically 1 to 5%). The result shows what each channel keeps and the volume multiple wholesale needs to match one DTC unit's contribution.

Wholesale keeps 60%+ of your DTC per-unit contributionThe volume math works at realistic multiples.
35 to 60%Accretive only if the account brings real volume without cannibalizing DTC.
Under 35%, or negativeThe account drains margin, walk or renegotiate terms.

The per-unit answer is only half the decision: wholesale also ties up cash in MOQs and net terms, which the inventory cash-flow calculator prices in days and dollars, and the DTC profitability calculator rebuilds the P&L the DTC leg depends on. All the free DTC calculators share these benchmarks.

Questions

Common questions

How much margin do I keep on wholesale?
Standard keystone pricing means the wholesale price is 50% of retail. On a $60 retail product with an $18 landed cost, DTC gross margin is about 70% while wholesale gross margin is about 40%, before chargebacks take their cut. Apparel wholesale margins typically run 30 to 50%. That is the starting spread this calculator builds on.
What is keystone pricing?
The standard wholesale convention: the retailer buys at half your retail price and marks it up 2x to sell at retail. Some categories negotiate away from it, but 50% of retail is the default starting point in most buyer conversations, which is why it is the default in this calculator.
What are chargebacks and deductions?
Amounts retailers deduct from your invoice for late shipments, labeling errors, damages, and promotional allowances. They typically run 1 to 5% of invoice value, and big-box retailers usually sit at the high end or above it. They come straight out of your wholesale margin, which is why the calculator subtracts them before comparing channels.
When is wholesale accretive instead of dilutive?
When the contribution per unit, times the volume the account realistically brings, beats what the same inventory earns through DTC without cannibalizing your own site. Watch the volume multiple this calculator gives you, and remember wholesale also ties up cash: MOQs are paid up front and net terms mean the money arrives months later.
Should DTC brands do wholesale at all?
Often yes, but as a deliberate channel decision, not a rescue for weak DTC economics. Wholesale buys distribution and discovery you cannot cheaply buy with ads. Across the brands I've operated and advised, it works when DTC unit economics are already healthy and the wholesale terms are priced with open eyes.
Does wholesale cannibalize DTC?
Sometimes, and it hurts most when the retailer discounts. If a customer who would have paid full price on your site buys discounted at a retailer instead, you traded a high-contribution order for a low one. Protect pricing with MAP enforcement and keep hero SKUs or bundles exclusive to your own store.