Landed Cost Mistakes Destroying Your DTC Margins

9 May 2026 · 6 min
6:21

In this instructional video, Lara Guevara of Move Supply Chain warns DTC founders that aggressive ad scaling alone cannot sustain growth without a ready supply chain. She identifies three critical supply‑chain blind spots that cause stockouts, margin erosion, and fulfillment bottlenecks, and provides concrete, step‑by‑step remedies. 1. Scaling ads without scaling inventory – Brands that boost ad spend often run out of stock because purchase orders are not aligned with campaign calendars. Lara advises planning POs 16‑20 weeks ahead, building a PERT forecast, maintaining a backup supplier, and ensuring at least eight weeks of inventory coverage for top SKUs. 2. Ignoring landed cost – Many founders price only on unit cost, overlooking tariffs, freight, 3PL fees, packaging, and returns buffers. This hidden cost can collapse margins even as revenue soars. She recommends calculating full landed cost per SKU, pricing at a minimum of 3.5× landed cost, and flagging any SKU with less than 60 % gross margin for review. Tools like Triple Whale, Liferay, or a simple spreadsheet can automate this. 3. Fulfillment bottlenecks – Rapid order spikes can overwhelm 3PL partners, extending shipping times, increasing refunds, and inflating CAC. Lara urges an audit of 3PL SLA performance, mis‑pick rates, and surge capacity, and to keep average fulfillment windows under 48 hours. Through real client anecdotes (e.g., $80K lost to stockouts, $150K dead inventory, $120K missed BFCM revenue), she illustrates the financial stakes. The video ends with a call to action to book a free strategy call and watch a related video on product‑development mistakes.

Chapters

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