Bonjour Millionaire,

I usually start Wednesday emails with a blind item.

Today I’m naming names.

Keeping this brand anonymous would:

🥥: Remove important context.

🍹: Seem to imply the brand did something wrong, which I don’t think it did.

If that doesn’t entice you to read, you’re less nosy than me!

Was this email forwarded to you?

ON THIS EPISODE OF GO-TO-MILLIONS 

In December, The Honest Company shut down its DTC business, app, and Canadian brick-and-mortar stores.

Honest products are now sold exclusively through 3rd-party retailers. 

This news had some people SHOOK.

Cue LinkedIn speculation about what really went down, what it means for ecommerce, fearSTRESSpanic. 

I don’t think that’s productive.

I’d rather talk about how Honest explained the decision and what we can all learn from it.

Honest shut down DTC with 3 goals:

🧩: Reducing complexity

🎯: Focusing on core product categories

💰: Strengthening profitability

All of these are valid, dare I say GOOD, reasons to walk away from a channel.

Honestly, I don’t think brands walk away enough!

Being everywhere is NOT a KPI.

It’s how too many brands spread themselves thin and lose the plot.

Not today, millionaires! 

Here’s how your brand can quit while it’s ahead.

👛 Complexity is a bill that always come due. 

Best-case scenario: More channels means more customers and more $$$.

However, more channels also means… 

More forecasting.

More CX edge cases.

More measurement (and measurement problems).

More ops and supply chain strain. 

Potential loss of control.

And, not necessarily more $$$!

Remember: It’s always easier to sit it out than to get out.

🧮 No Know your margins.

DTC’s wonderful… when contribution margin, shipping, returns, and CAC cooperate.

When they don’t, other channels might be a better option.

This is why poppi directs shoppers to Amazon, Target, or Walmart, instead of selling DTC. 

Also: why I prefer working in beauty (my current) vs. cold-pressed juice (my past).

DTC is a game of margins. 

If total business is better supported elsewhere, GO THERE.

⛔ Opting out can be a brand asset.

Expansion is great when it serves the mission. 

Expansion because everyone else is doing it often backfires.

“Shiny object syndrome” has turned many wonderful brands into just okay ones.

What a waste!

Skipping a channel (or really, anything) is strategic when it aligns with brand truth and economics. 

This is why you can’t buy Patagonia clothing on Amazon.

Make “dig the moat” your filter.

If a channel protects and compounds your core business, go ahead.

If a channel dilutes it, skip it.

If you’re not sure, take more time to think about it. 

⏳ “No” doesn’t have to be forever.

“No” is a complete sentence, but it’s not a life sentence.

“No” really means “no right now.”

“No, until it makes sense to say yes.”

Economics, customer behavior, policies, and strategies change. 

Your playbook has to evolve, too.

Nike ended direct sales on Amazon in 2019, due to concerns about counterfeit products from 3rd-party sellers. Focusing on DTC better controlled the customer experience.  

Nike returned to Amazon in 2025, because now brands can be hard-gated. Only Nike and Nike-authorized 3rd-party sellers can sell Nike products.

Amazon’s bigger than ever. Nike has more control on Amazon.

“Yes” made sense. 

There’s no magic channel that’s right for every brand. 

Not DTC.

Not Amazon.

And, don’t get me started on TikTok Shop (so much nuance).  

Only your brand can decide if the juice is worth the squeeze. 

Here’s a place to start…

✅: What’s the primary goal of this channel: profitable growth, distribution, awareness, or retention?

✅: What happens to contribution margin after fees, shipping, returns, and incremental spend?
✅: What operational complexity does this channel add?
✅: What parts of the brand suffer as a result of this channel?
✅: What does “winning” look like in 90 days with current resourcing?
✅: What’s the exit plan if the channel underperforms?

Ultimately, you’re brand is the expert on your brand. 

Test and validate your own best practices.

“No” thyself.

GO-TO-MEME

This doesn't really relate to us but I got such a kick out of it.

What's your olive oil brand of choice? 

Yours,

Ari 

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