How to expand from Direct-to-consumer (DTC) to retail
Discover the key considerations to strategically expand from online DTC to physical retail stores, so your brand can successfully scale and grow.
The DTC-to-Retail Leap
For digitally native brands, jumping from direct to consumer (DTC) into retail stores isn’t just a step forward -it’s a full-on reinvention. You’re entering brick and mortar stores where shoppers have one second to notice you and retailers are judging every inch of your business model.
In 2025, traditional retail is resurging. Not only is online customer acquisition cost (CAC) increasing, evolving consumer preferences show that shoppers want an omnichannel experiences — shop online, discover in store or buy on one channel and return on another. This means DTC brands who thrive only on ecommerce platforms need an omnichannel retail strategy to truly scale and win.
This guide walks through the core pillars of DTC to retail expansion strategies, so your brand can successfully launch and grow in retail.
Choose Your Retail Strategy Wisely
Start small. Pilot in a few retail locations that align with your target audience. Track what works. Measure sales by SKU, monitor returns and capture feedback. Use that data to refine your strategy and scale smart.
There are also many ways to partner with retailer. You can go direct to stores, work with distributors or hire brokers.
The right go-to-market strategy for retail entry can be the difference between a short burst and sustainable growth.
Understand Where You Fit on the Shelf
Retail buyers think in categories. Where do you land in theirs?
Are you replacing a legacy product that is losing relevance or are you a complementary product that increases basket size? For example, a cold brew might pair perfectly with protein bars in the grab-and-go section.
Bring data to support your pitch. Do you have high repeat purchase rates or strong brand loyalty metrics? Show performance data to prove why you’ll drive velocity and margin.
You need to know your competitive set inside and out. What are the key differences between you and them? Are you cleaner, more affordable or easier to consume? Tailor your pitch to what retail buyers care about — speed of movement, better-for-you upgrades or a fresh take on tired categories.
Rethink Your Pricing and Product Margin
The pricing that works on your DTC site might not cut it in a retail store. It is crucial to understand retail markups and how wholesale pricing impacts your profit margins.
DTC brands often enjoy complete control over pricing online. In retail, that flexibility disappears because you are dealing with multiple vendors, including retailers, brokers and distributors. Pricing changes often take at least a quarter to get into effect.
Distributors typically take between 25-35% of the wholesale price. Retailers then add their own markup, often 40-60% depending on the category and expect you to support trade spend, demos and promotions. Slotting fees and marketing costs can quickly eat into your margin if you don’t plan ahead.
Build your unit economics with all of that in mind.
You’ll also want to build a pricing architecture that works for the entire customer experience (all channels). If your online price is drastically different from your in-store price, your customers may feel burned. Keep it consistent as possible across your distribution channels.
You can read more about distribution centers and how to sell to distributors here. You can also access our free retail gross margin calculator here.
Prep Your Packaging for 1-Second Shelf Impact
When selling directly to consumers, you have a full product page, videos and storytelling. In physical stores, you get 1 second.
Retail is like speed dating. Your packaging has to stop people in their tracks and communicate value instantly. What is the product? Why should they care? Who is it for?
Design with both planogram constraints and shelf impact in mind. Will your packaging face forward? Will your packaging callouts be blocked by the shelves? Can your boxes be stacked or can your pouch stand up straight? Will it stand out in a sea of products?
Your packaging is your salesperson. Make sure it reflects your brand identity and delivers on what your digitally native customers already love.
Building Brand Awareness
Retail buyers don’t want to take chances. If no one knows your brand, it won’t sell. That’s where marketing and trade spend comes in.
This is where digitally native brands have an edge. Use your customer acquisition engine to support retail. Bring foot traffic. Prove you can sell through.
Invest in PR, influencer campaigns, targeted ads and product sampling to drive awareness around store locations. Create buzz.
Scale Your Supply Chain Without Breaking It
Retail introduces a new level of complexity in your supply chain. Expanding into retail requires supply chain that can handle volume, speed and consistency.
Start by evaluating your contract manufacturer (copacker) or manufacturer. Can they meet the production requirements of retail partners? Are they equipped to scale without compromising quality?
Order fulfillment becomes more complex in retail. You may be dealing with multiple distribution centers, different delivery schedules and specific pallet configurations. Choose a third-party logistics (3PL) partner with retail experience. Not all 3PLs are built the same. You want one that understands how to meet strict delivery windows and navigate compliance with large retailers.
If you’re not ready to own inventory at scale, work with a distributor to manage your retail channel. This adds a layer of cost but can make retail entry much smoother.
Lastly, consider backup plans for raw materials, production and shipping. A missed shipment or delayed PO can cost you shelf space.
Supply chain readiness for retail is not just about moving boxes. It’s about building a reliable system that supports long-term growth in both DTC and retail environments.
Get Retail-Ready on Compliance
Retail compliance for DTC brands can be a major barrier. Every product hitting store shelves must meet strict requirements — from barcodes and nutrition panels to allergens and label claims.
Make sure your product is legally shelf-ready. This includes certifications, country of origin declarations and retailer-specific paperwork.
Nothing ruins a retail relationship faster than delayed launches due to missing documentation and wrong packaging requirements. Stay ahead of this.
Raise Capital (You’ll Need It to Scale)
You might be able to tell by now. Transitioning from DTC to retail is expensive. You’ll need capital to support trade spend, merchandising, new hires and new and larger production runs.
Map out your cash flow and build a realistic runway. Explore funding options like working capital loans, inventory financing or a new equity round.
Even if your DTC business has strong profit margins, retail expansion will stress-test your budget. Be ready.
Track Everything. Automate What You Can.
Retail operations get messy fast. You’ll be dealing with purchase orders, invoices, deductions and fulfillment tracking.
Set up systems that give you more control. Automate data collection, organize Slack updates and build clean spreadsheets your ops and sales teams can actually use.
Consider using order-to-cash automation to manage everything from purchase order tracking to invoicing. The more you streamline, the faster you can focus on growth.
Read more about how to :
Retail is a Long Game - Play Smart
Your direct to consumer journey was your bootcamp. Retail is the big league.
It’s not just about getting on shelf. It’s about building real customer relationships in brick and mortar stores. Stay close to your customer, build operational muscle and protect your brand identity as you grow.
With the right foundation, retail distribution for dtc brands is a powerful way to meet your consumer where they are and scale your business model beyond online platforms.
Play the long game. Play smart. And make sure your brand thrives in both DTC and retail channels.
FAQ
1. What is the best strategy for DTC brands to enter retail in 2025?
This depends on how much capital you have and your understanding on product-market fit. General advice is to start small with a selected number of stores that match your target audience. Use data to refine your retail strategy before scaling. Focus on packaging, product margin, pricing and supply chain readiness from day one.
2. How should DTC brands price products for retail vs online?
Retail requires different pricing. Factor in distributor cuts, broker commission, retailer markups and trade spend. Build a pricing strategy that keeps prices consistent across DTC and retail channels to maintain customer trust.
3. What are common supply chain challenges when expanding to retail?
Expect tighter delivery windows, more complex fulfillment and the need for buffer inventory. Partner with 3PLs and copackers who have retail experience. Set up contingency plans for raw materials and shipping delays.
4. How can DTC brands create shelf-ready packaging for retail?
Packaging must communicate value in one second. Focus on clear callouts, shelf presence and planogram fit. Make sure it reflects your brand and stands out in crowded categories.
5. What systems do DTC brands need for retail expansion?
Invest in automation tools to manage POs, invoices and inventory tracking. You can streamline operations with order-to-cash platforms and leverage inventory management tools to stay organized and scale retail without chaos.
