Inventory-backed direct-to-consumer retail. Unlike SaaS, profit lives in contribution margin after fulfillment, returns, and ad spend — MER/blended ROAS and repeat-purchase rate matter more than any single-channel ROAS. It is the most benchmark-rich model (cart abandonment ~70%, conversion ~1–3%).
Representative companies
- Warby Parker — DTC eyewear, omnichannel
- Allbirds — where CM3 and repeat rate decide viability
- Glossier — community-led DTC beauty
Primary metrics
The metrics that define health for a e-commerce business.
- Contribution margin (CM1/2/3)Global / FinancialDTC CM3 (post-CAC) >20% common target. Tier definitions are NOT standardized - verify the stack before comparing.
- CACAcquisitionDTC vertical medians: pet ~$23, fashion ~$37, beauty ~$42, food ~$51, fitness ~$67, supplements ~$89. No universal 'good'.
- MER / blended ROASAcquisitionHealthy DTC ~3-5x; mature subscription >6x; 2025 Triple Whale customer median only ~2.4x.
- Storefront conversion rate (CVR)ActivationAvg ~1.4%, top 20% >3.2%, top 10% >4.7%. AOV predicts CVR: <$60 AOV ~4.6% vs >$200 ~0.95%.
- Repeat purchase rateRetention~20-25% within 90 days = healthy (agency heuristic, not a rigorous study).
- Inventory turnoverRetentionEcom ideal ~4-6x; leaders 8+; consumer-electronics retail ~6-10x.
- AOV (average order value)RevenueMedian DTC ~$74; broad range $80-120; electronics $200+, beauty ~$60.
Secondary metrics
Omega Point BenchmarksE-commerce