CFO services for direct-to-consumer brands.
A direct-to-consumer brand buys customers with advertising and earns them back over repeat purchases — if the repeat purchases come. We bring finance leadership that builds the cohort analysis, the contribution margin after advertising, and the cash forecast that together answer the only question that matters: does the next dollar of ad spend return.
The finance problems that define this segment.
First-order economics are negative for many brands.
Customer acquisition cost exceeds first-order contribution; the business depends on repeat purchases that must be measured by cohort, not assumed.
Contribution margin after advertising is the real margin.
Gross margin after product cost, shipping, payment processing, and returns is not the number; advertising attributed to the order is a variable cost of acquisition.
Attribution is contested.
Platform-reported return on ad spend, modeled attribution, and blended marketing efficiency ratio tell different stories; finance must choose a definition and reconcile.
Inventory purchases precede the sales that fund them.
Purchase orders, supplier deposits, and lead times mean cash goes out months before revenue; growth consumes cash.
Returns and discounting erode margin quietly.
Return rates by product, refund and exchange cost, and promotional discounting must be tracked at the stock-keeping unit (SKU) level.
Shipping is a pricing decision.
Free-shipping thresholds, carrier rates, and dimensional weight shape both conversion and margin.
Channel expansion changes the model.
Adding marketplaces, wholesale, or retail introduces new margins and cannibalization.
How we run finance here.
- Cohort economics — repeat rate, orders per customer, contribution per customer by acquisition cohort and channel; lifetime value on a contribution basis.
- Contribution margin after advertising by order, product, and channel, monthly.
- Marketing efficiency — blended marketing efficiency ratio, customer acquisition cost (CAC) by channel, payback period, reconciled to platform-reported figures.
- Inventory and cash planning — purchase commitments, supplier terms, sell-through, 13-week cash forecast with inventory as the central driver.
- Returns, discounting, and shipping economics at SKU level.
- Channel economics when expanding beyond the storefront.
- Investor or owner pack — revenue, contribution after advertising, cohort curves, inventory health, cash runway.
- Pricing and promotion governance.
Key metrics we build and report.
| Metric | What it tells you |
|---|---|
| Contribution margin after advertising | Real profit per order |
| CAC by channel and payback period | Acquisition efficiency |
| Cohort repeat rate and contribution lifetime value (LTV) | Whether customers earn back their cost |
| Blended marketing efficiency ratio | Advertising dependence |
| Inventory days on hand and purchase commitments | Cash tied in stock |
| Return rate and refund cost by SKU | Margin leak |
| Average order value and discount rate | Pricing discipline |
| Shipping cost per order vs. shipping revenue | Shipping economics |
| Cash runway under growth scenarios | Fundability |
| Gross margin after landed cost | Product economics |
Worked example.
A direct-to-consumer skincare brand, $18M revenue, 70% from paid acquisition.
The plan: CAC guardrails tied to cohort LTV; purchase planning against sell-through with a cash floor; SKU-level return analysis; subscription option to raise repeat rate; investor pack on a contribution basis.
Where we’ve done this.
Direct-to-consumer brands in skincare, apparel, food, and home categories; brands adding marketplaces and wholesale; venture- and sponsor-backed consumer brands preparing for raises and sales. Pattern-level only.
Our return on ad spend looks fine. Why are we losing money?
Platform-reported returns ignore product cost, shipping, returns, and payment fees; contribution after advertising is the number, and it often tells a different story.
How do we know if growth is worth funding?
Cohort LTV on a contribution basis against CAC, with payback inside your cash runway; we build that model.
Can you help us plan inventory?
Yes — sell-through, lead times, supplier terms, and purchase commitments connected to the cash forecast.
Should we expand to marketplaces?
We model the channel margin, cannibalization, and operational cost before you commit.
Further reading.
Cost Per New Client: Measuring Intake and Marketing Like a Business
How behavioral health practices should calculate cost to acquire a new client, client lifetime value, and payback — by referral channel and payer — with a worked channel comparison.
Read article → InsightThe 13-Week Cash Forecast for a Behavioral Health Group
How to build and run a rolling 13-week cash forecast in a behavioral health practice — collections by payer, payroll timing, a worked example, and the decisions it makes possible.
Read article → InsightPreparing a Behavioral Health Group for a Sale or Private Equity Investment
What buyers and investors examine in a behavioral health practice — quality of earnings, clinician retention, compliance, and receivables — and how to prepare 12 to 24 months ahead.
Read article →Insights for this vertical.
E-commerce-specific insights are being published.
Tell us about the business.
One conversation about where the numbers stand and what the next stage needs from finance. We will tell you where we can help, where you need someone else, and what it would cost.
The information on this page is provided for general informational purposes and does not constitute accounting, tax, legal, or investment advice. Sales tax, indirect tax, customs, and cross-border compliance obligations depend on the specific facts of the business and change frequently. Figures in examples are illustrative. See our full Legal Disclaimer.