DTC101|48 facts
← Back to Facts
Category

Retail

48 retail strategy insights from Nik Sharma on wholesale, retail expansion, in-store execution, and omnichannel growth.

#001

With influencers driving retail sell-through, the key is letting them tell the story how they feel it would resonate with their audience. Sometimes it was showing on darker skin that the product doesn't have a pasty white finish. Each creator had their own way, and the collection of all their approaches made it special.

From the Limited Supply archive — Sign up
#002

The reason we love DTC as a sales channel is the data we get throughout the process. With retail, in most cases, you'll never see that data. Set up your website to collect zero-party data and use it to direct specific cohorts to retailers to drive sell-through.

From the Limited Supply archive — Sign up
#003

Most retail buyers don't see much first-party data, so coming to the table knowing what variants sell better, what else your customer buys, and other brands they shop from helps lower their anxiety of 'If I put this on the shelf, will it sell?'

From the Limited Supply archive — Sign up
#004

Native deodorant was doing 8-figures in annual revenue online when it started selling in Target, but in a short amount of time Target was moving 7-figures per week in revenue.

From the Limited Supply archive — Sign up
#005

As you scale into other sales channels, DTC becomes the lever to drive trial, gifting, product education, creating FOMO, and bulk orders for your super customers. In wholesale, you help fulfill the habitual purchase.

From the Limited Supply archive — Sign up
#006

The cheapest slot in the Allure Store in Soho was $7,500/quarter — about $80 per day. That includes 3 events per quarter, you own all the emails, Allure posts branded content, and you keep 100% of revenue. Think about how much you spend on Facebook ads. $80 is nothing.

From the Limited Supply archive — Sign up
#007

The early days of going live on the shelf in a new retailer are critical. If you drive enough sell-through early on, you get additional POs and placement in the chain's own advertising. If you have low sell-through, even with a single SKU, you risk being removed from the store.

From the Limited Supply archive — Sign up
#008

The most common thought is to run ads on Facebook that say 'Now available at Target' with a video going to a store locator. That should drive sell-through, right? Absolutely not — it never works.

From the Limited Supply archive — Sign up
#009

At Hint, we had the top 5 flavors available in retail and on Amazon, but online we emphasized the other flavors, as well as a subscription program. Get smarter around merchandising for the online customer vs the offline customer.

From the Limited Supply archive — Sign up
#010

Jake Kassan at MVMT Watches put his most popular style out of stock on the website and told people to go purchase it from Nordstrom. It drove a flood of traffic and made MVMT look a lot bigger than they were at the time.

From the Limited Supply archive — Sign up
#011

Obvi told customers that if they emailed in their receipts from buying at Rite Aid, they could earn 3x more points on their account. Smart way to drive retail sell-through.

From the Limited Supply archive — Sign up
#012

When selling into or launching in wholesale accounts, OOH is something retail buyers LOVE to see. It's also social proof — when a wholesale buyer is on the fence, you have something tangible to show.

From the Limited Supply archive — Sign up
#013

21 Seeds Tequila frequently used email and SMS to drive retail sell-through when it was needed — and then Diageo acquired them.

From the Limited Supply archive — Sign up
#014

With spirits, if you're unfamiliar with the BS three-tier system set up by the mafia, alcohol companies that are not wine can only sell to a distributor, which then sells to a retailer, which then sells to a customer.

From the Limited Supply archive — Sign up
#015

Having a retail storefront brings legitimacy that nothing else can. A storefront address or photo on your site immediately validates that you're not running a drop-ship quality brand.

From the Limited Supply archive — Sign up
#016

Retail stores get higher AOVs since people can sample right there and make an informed purchase, versus using their first online purchase as a sampling purchase.

From the Limited Supply archive — Sign up
#017

Don't go omnichannel to become profitable. To go into retail, you need economics already working for you. You shouldn't expect retail to build you a profitable business and be a solution.

From the Limited Supply archive — Sign up
#018

9 times out of 10, if your brand is doing $25M+ in annual revenue, physical retail and retail sell-through are part of the equation. Even though eCommerce has grown dramatically, 80%+ of all transactions for physical goods in the US still happen in physical stores.

From the Limited Supply archive — Sign up
#019

According to the Federal Reserve Bank of St. Louis, only 15.1% of all US commerce happens online today. We had a COVID bump, but retail is where a lot of brands make a big percentage of their revenue.

From the Limited Supply archive — Sign up
#020

When retail-focused marketing is happening, it should all be done through the lens of a digital performance marketer. It still needs to represent the brand well, but there are so many ways to make your ad dollars work harder for you.

From the Limited Supply archive — Sign up
#021

Generic brand awareness ads for retail don't work. No one will see a silly commercial and think, 'You know what I should do today? Go to Target and get this kombucha!' Just like with your DTC channel, a Kohls-like commercial wouldn't drive any click-through or intent to purchase.

From the Limited Supply archive — Sign up
#022

Within your existing email/SMS lists, you can segment prior customers by location and send targeted blasts with unique offers to drive foot traffic to a nearby store. The trick is to have an offer — a discount, a new colorway, a Venmo payment for uploading their receipt.

From the Limited Supply archive — Sign up
#023

Design packaging with the retail shelf in mind from day one. It's a pain in the ass to redo it when you go into meetings to pitch to buyers.

From the Limited Supply archive — Sign up
#024

Amazon controls roughly 49.5% of all ecommerce sales in the US — 2.6 billion visits in November 2023, over 2 billion per month regularly. 31% of U.S. adults spend $50-$100 per month on Amazon.

From the Limited Supply archive — Sign up
#025

Amazon's FBA fees typically run 18-35% of the total sale price. The goal: make up for what you lose in margin by selling in volume with the biggest eCommerce retailer in the world.

From the Limited Supply archive — Sign up
#026

Nood's retail acquisition funnel: geo-targeted ads with a strong offer, a dedicated landing page, segmented email/SMS to existing customers in those geos, direct mail, then hit new captures with texts and emails until they convert.

From the Limited Supply archive — Sign up
#027

60% of US shoppers prefer buying smaller items online but consider larger purchases in-store. For anything over $1K, people still like to visit a retail store before deciding to buy.

From the Limited Supply archive — Sign up
#028

A bad PDP on Revolve or Best Buy is equally a reflection of the brand itself, not just the marketplace. Whether you're on TikTok Shop, Amazon, Goop, or Nordstrom, make sure consumers have everything they need on every product page.

From the Limited Supply archive — Sign up
#029

For your retail sell sheet, use a landing page instead of a PDF. You can customize it per buyer, track visits, and run retargeting ads to buyers who visit. It gives the perception your brand is everywhere.

From the Limited Supply archive — Sign up
#030

For Hint Sunscreen's Target launch, beautifully animated brand ads targeting 5-10 miles around each store moved zero needles. FM radio in Florida moved nothing. What crushed: sponsored publisher content on Refinery29 and BuzzFeed with paid media behind it, plus influencers selected specifically for having Target shoppers in their audience.

From the Limited Supply archive — Sign up
#031

We sponsored TheSkimm doing a full takeover for Hint Sunscreen's retail launch and it worked well. Then we tested more niche newsletters and found their engagement rates were even higher. Go to the places where people are already getting advice and consuming content.

From the Limited Supply archive — Sign up
#032

The Allure Store in Soho had 83,000 'dwells' in two months. A dwell is when someone spends more than 10 seconds in one area of the store — that's 83,000 moments of genuine product consideration you can't replicate with a banner ad.

From the Limited Supply archive — Sign up
#033

Eight Sleep put their mattress in Showfields not to drive sales — it was to let people on the fence come feel the product heat and cool. Sometimes the purpose of retail isn't revenue, it's removing the last hesitation.

From the Limited Supply archive — Sign up
#034

The Allure Store package includes 3 events per quarter inside the store, you collect and own all attendee emails even if Allure invites them, they post branded content to their social channels, you get into off-site gift bags, and you keep 100% of sales revenue. All for $7,500/quarter.

From the Limited Supply archive — Sign up
#035

If you drive enough sell-through early on in a new retailer, you're not only getting additional POs, but you're also getting placement in the chain's own advertising. If you have low sell-through, even with just a single SKU, you risk being removed from the store.

Delivered May 1, 2022 — Sign up
#036

With CVS, you can ask for reports based on custom UTMs to your brand's traffic. See if the retailer will give you analytics on the specific traffic you drive.

Delivered May 1, 2022 — Sign up
#037

Add an 'Available at Target' badge (using the retailer's actual logo) to your website retargeting campaigns and see if your CTR goes down or CPA goes up. If not, keep it there. If it goes down, remove it.

Delivered May 1, 2022 — Sign up
#038

Newsletters with consumer-like readerships drive great retail sell-through. TheSkimm drives great sell-through with Target stores. Find newsletters with an audience that matches the retailer's audience.

Delivered May 1, 2022 — Sign up
#039

Use highlights at the top of your Instagram profile to show what retailers carry your product, and link to a retailer-specific landing page on your website or a store locator.

Delivered May 1, 2022 — Sign up
#040

People will buy your product where they want — don't be afraid to advertise on your DTC site that you're available at a retailer. Make sure in your navbar, homepage, PDPs, and footer, you make it easily known there's a store locator available.

Delivered May 1, 2022 — Sign up
#041

Run small to medium-sized ad tests in key retail markets to test product-level messaging, brand-level messaging, flavors per geo, and recipes. By the end, you know exactly how to message in Southern California vs. Austin, TX — insights that feed field marketing, shelf strips, social, email, and sales conversations with retailers.

Delivered October 9, 2022 — Sign up
#042

Celebrity brands flip the retail distribution model: instead of brands trying to drive sell-through, retailers scale up inventory to be available. Retailers rely on the celebrity brand's foot traffic, letting it act as a loss-leader product without any discount.

Delivered October 2, 2022 — Sign up
#043

Outdoor Voices scaled to $40M/year before Ty Haney departed in 2020, with roughly 70% of total revenue from DTC despite 12+ retail stores. The LTV of someone who shopped in a physical store was roughly 4X higher than a traditional ecommerce customer who clicked an ad and bought online.

From the Limited Supply archive — Sign up
#044

Local radio for retail sell-through is a waste. We tested it, isolated specific geos to measure lift in sell-through, and it did nothing. Most of the listener data radio stations sell you on is BS.

From the Limited Supply archive — Sign up
#045

For retail sell-through, advertise where people are already consuming and trusting content — newsletters, internet publications, influencers, advertorials, coupon programs, bloggers. Channels with less targeting ability do really well when paired with retail sales KPIs due to the benefits of distribution.

From the Limited Supply archive — Sign up
#046

Launch on Amazon only after your DTC site is doing at least $50K-$100K/month in revenue. At that point, you've proven product-market fit, iterated on creative and copy, and have the capital to invest in a new channel that takes about 3 months to set up properly.

From the Limited Supply archive — Sign up
#047

For driving retail sell-through at Target, brand marketing's billboard-style animated ads and geo-targeted campaigns moved zero needle. The performance team pivoted to sponsored publisher content (Refinery29, BuzzFeed), influencer whitelisting, and newsletters — and saw noticeable sell-through lifts.

From the Limited Supply archive — Sign up
#048

When driving retail sell-through, you can't push something onto people — you need to let them discover and find you. Stories let you sneak higher up in the funnel without feeling like an ad. No one opens Instagram excited to find your ad.

From the Limited Supply archive — Sign up