Part 2 · The market
Chapter 7 of 14
Channels
The question
Which sales channel pays Plantd the most per jar, and in what order should they open?
The answer
Selling direct. Per 8 oz jar Plantd keeps about $18.53 on Amazon before ads and $9.88 through a distributor, so direct channels come first.
Key number
1.9×
what Amazon keeps Plantd per jar, against a distributor (estimate)
What we found swipe
- Faire Direct keeps about $13.15, Faire marketplace $10.97. Distributors keep $8.42–9.88. All estimates, with assumptions shown.
- Distribution works only if a jar lands at about $4.50 or less. At $8 it barely breaks even through the big distributors.
- Direct routes also build the proof retail asks for. Reviews, branded search and customers by zip code come from Meta, the site and Amazon, not from a distributor listing.
What it means for Plantd
Open the channels in order of what each jar earns and what each builds: the site through Meta, then Amazon, then Faire, then distributors once there is sell-through. The Amazon launch has its own chapter in Part 3.
The evidence
Direct and marketplace Distributor
↑ 1.9× the Threshold route, before ads.
↑ Distributors buy reach Plantd can't create itself, at about a third of the shelf price.
Assumptions: retailer margin 42–50%, distributor 27–32%, trade 8–22.5%, FBA $4.76, DTC shipping $6.50. Full waterfall in the appendix.
Data as a table
| Route | Net per jar |
|---|---|
| DTC Shopify, single jar (before Meta ad cost) | $21.26 |
| Amazon FBA (before ads) | $18.53 |
| Faire Direct | $13.15 |
| Faire marketplace | $10.97 |
| Threshold Enterprises | $9.88 |
| Lotus Light (listed today, no sell-through yet) | $9.37 |
| UNFI / KeHE (Whole Foods, Sprouts) | $8.42 |
Do this first
Go deeper
Full detail: Channel economics, Amazon comps, fees, listing copy and A+ plan
The operator layer behind this chapter. Inside:
- The channel math, step by step, with every assumption
- What each channel pays on the face line too
- Why the order is Meta, Amazon, Faire, then distributors
