For D2C Brands

Grow profitably, not just fast

D2C brands spend aggressively on ads. NetNet shows you which campaigns generate profit (not just revenue), tracks contribution margin, and sends AI-powered weekly P&L analysis.

Why D2C margins are under pressure

Rising CAC

Customer acquisition cost has risen 60% since 2020. Ad platforms are more competitive. Your paid channels need stronger ROAS just to break even.

Ad platform changes

iOS privacy updates, cookie deprecation, attribution loss. You're flying blind with targeting. Audience quality has dropped while costs rose.

Shipping cost inflation

Carrier rates up 15–25% in the last 3 years. Free shipping thresholds set in 2021 are now loss-leaders. Need to recalculate CM monthly.

Payment processor fee creep

Stripe, Square, and others raise rates 0.1% at a time. 2.9% + 30¢ became 2.99% + 30¢ became 3.09% + 30¢. That's 3.4% of your margin gone.

This Week
Revenue vs Net Profit
Revenue
Net Profit

How D2C brands use NetNet

(1) Find which products to promote

High CM products scale better than high ROAS products. NetNet ranks products by contribution margin. Scale the winners, kill the margin-killers.

(2) Set POAS targets per channel

Meta profitability (1.5x POAS minimum), Google Shopping (2.0x POAS minimum). Set hard rules per channel and let your campaigns optimize within them.

(3) Weekly AI reports catch margin drift

Every Monday: 'Your margin dropped 2.3% WoW. Cause: new shipping rate.' Get ahead of the problem instead of discovering it in month-end reporting.

D2C brands typically discover

15–25% of products

have negative contribution margin

They're losing money per order. Some look profitable until you add shipping and fees.

Free shipping thresholds

set too low

Set a $45 minimum in 2020. It's now a 5% margin killer. Recalibrate quarterly.

Best ROAS campaigns

aren't always most profitable

Campaign A: 5x ROAS, 25% margin = 1.25x POAS. Campaign B: 2.5x ROAS, 55% margin = 1.375x POAS. B wins.

POAS — Profit on Ad Spend →

The only metric that tells you if a campaign makes money. Sync Meta and Google Ads. See blended and per-platform POAS.

Contribution Margin Tracking →

Know if each order contributes to covering overhead. The layer between gross profit and net profit that sets your acquisition ceiling.

AI Weekly Reports →

Every Monday: what drove the week, top concern, one actionable recommendation. In your inbox, powered by AI.

UTM Attribution →

See revenue and profit by source/medium/campaign. Know which channels bring profitable customers.

Discount Code Profitability →

Are your acquisition discounts eating all the margin? Compare discounted vs non-discounted orders side by side.

The specific problem at this size

A brand between roughly one and five million in revenue has outgrown the tools that worked at the start and cannot yet justify the ones built for the next stage. The spreadsheet that answered every question at fifty orders a month is now a part-time job, and the analytics suites that would replace it are priced and scoped for businesses several times larger.

It is also the size at which cost structure stops being simple. There are multiple suppliers with different terms, more than one shipping lane, a second payment method, a growing stack of software subscriptions, and enough return volume to matter. Each addition is individually small and collectively decisive.

The result is a business making real money with real complexity, run on numbers that were accurate two quarters ago.

What usually changes first

The product ranking. Ranked by contribution margin rather than gross margin, most catalogues reorder — and the items that fall are frequently the ones being advertised hardest, because they convert well precisely by being priced attractively.

The acquisition ceiling. Knowing margin per order converts what you can afford to pay for a customer from an argument into arithmetic, which changes the conversation with whoever is running the ads.

And the shipping line. The gap between what customers are charged for delivery and what delivery costs is the single most common source of quiet margin loss at this size, usually because a free-shipping threshold was set when baskets were larger and never revisited.

Scale profitably with NetNet

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