Our product @scorchmarker is in about 500 Walmart stores.
But when we actually break down contribution margin,
We make more profit per unit in retail than we do on the website (scorchmarker.com).
Which surprises a lot of people!
On our website, every single sale costs us money before we even factor in product cost.
$20–$30 to acquire the customer through ads, plus around $8 to ship the order, so we’re already $30–$40 in the hole.
In retail, we sell at wholesale – roughly 50% of the list price
But there’s no customer acquisition cost and no individual shipping expense.
We send one bulk shipment to a distribution center, and they handle the rest.
So even at half the retail price, the margin can actually be stronger because retail removes CAC and shipping cost from the equation
This makes it one of the most profitable selling channels for us.