The Questions Every DTC Founder Should Ask Before Saying Yes to a Retailer

But before you say yes, you need to slow down. Retail partnerships are high-stakes, and the wrong deal can hurt your margins, strain your operations, and damage your brand. These are the questions every DTC founder should understand before agreeing to retail.

Retail Question #1: What Are the Payment Terms?

Cash flow is the silent killer in retail. Many retailers operate on Net 30, Net 60, or even Net 90 terms. Ask: How long until invoices are paid? How will this impact our working capital needs?

Retail Question #2: Who Owns Sell-Through?

There's a big difference between sell-in (what the retailer buys from you) and sell-through (what customers actually purchase). Ask: What happens if the product doesn't move? Are we on the hook for markdowns or returns?

Retail Question #3: What Are the Hidden Costs?

Slotting fees, chargebacks, and promotional allowances are common - but not always disclosed upfront. Ask: Are there slotting or listing fees? What penalties exist for late shipments or labeling errors?

Retail Question #4: How Does This Fit Into Our Brand Strategy?

Ask: Does this retailer align with our brand story? Will being on their shelves enhance credibility - or compromise it? Are we ready to support this channel operationally?

A retail partnership isn't just another sales channel - it's a relationship with financial, operational, and brand consequences. Founders who ask the right questions upfront can spot red flags early. The full Making Retail Work for Your Brand bundle inside The DTC Operator gives you the complete system. It's $249. [Get the bundle →]