Brands are seeing better margins in wholesale than DTC

At Glossy’s E-Commerce Summit in Miami this week, executives discussed the rising costs of doing business on e-commerce. 

“With DTC, there are the shipping costs, the logistics costs, the employee costs, retention, acquisition — the list goes on,” said a brand executive during a town hall discussion.

While brands are used to seeing higher margins on the direct-to-consumer side of the business, which has so far worked to balance out lower wholesale margins, that’s no longer the case, according to event attendees.

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