# What is DTC / D2C?

What is DTC / D2C? Selling directly to consumers without intermediaries. Control over price, experience, and customer data. Higher margin.

## How it works in practice

DTC provides: higher margin, direct customer data, and full control over brand messaging.

## Related metrics

- CAC — in DTC, the merchant bears the full CAC
- LTV — DTC enables higher LTV
- Brand Building — DTC is the tool
- Wholesale — the alternative

## Common misconception

'DTC means no need for distributors.' DTC and wholesale can coexist.

## How to fix it

DTC not growing? (1) check CAC vs. LTV, (2) a compelling brand story, (3) social proof and UGC.

## Real-world example

A shampoo brand: supermarket margin was 18%. DTC margin was 52% plus a monthly subscription. The combined margin and LTV boost tripled profitability (2.8x).

## Where to start

DTC plus wholesale is the ideal mix. Pilot DTC before major investment.

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Category: Operations · From the [Jimmy OS KPI Glossary](https://jimmy-os.com/glossary/kpi.md) · Source page: https://jimmy-os.com/glossary/kpi/dtc-d2c