A critical moment for many successful retail brands comes when they contemplate going public, weighing an IPO’s massive infusion of cash against the likelihood of shareholders storming into the car and becoming cacophonous backseat drivers.

For DTC brands, there’s a similar fish-or-cut-bait moment when it comes to partnering with retailers to be sold in stores. The potentially huge growth in sales from being on shelves, while tempting, risks brands losing the direct consumer connection and insight that is the hallmark of DTC brands.

Sarah Paiji Yoo, CEO and co-founder of DTC sustainable cleaning- and personal-care products brand Blueland, said that after launching in 2019, she committed to eschewing selling wholesale to retailers for three years.

But the retailers came courting anyway.

Keep reading here.—AAN

Digitally native brands (DNBs) and physical stores take different routes to reach the same goal—sort of like Chicago deep dish and Neapolitan-style pizza.

Even though they start out as solely e-commerce plays, many DNBs are making the move to IRL channels. And Placer.ai’s latest white paper reveals how they’re doing it to grow their businesses and reach new audiences.

There are a few approaches DNBs typically take when bringing their businesses in person. They could build massive store fleets, hone in on a few well-placed stores, or just focus on temporary pop-ups.

Of course, there are different strategies to consider on this route. The main one? Location, location, location.

Learn how DNBs are making the most out of brick-and-mortar. Download Placer.ai’s white paper.

TikTok Shop sellers in the US will soon see the platform take a bigger commission cut as it works to expand its fast-growing e-commerce business.

TikTok told sellers this week it’ll start increasing its commission from 2% to 8%, in addition to charging 30 cents per transaction, The Information reported.

The social media platform will also pull back on the subsidies it was offering some merchants, which allowed them to sell products at often extremely discounted prices, a source told the outlet. The Information reported in August that TikTok was expecting to lose more than $500 million in 2023, partly due to these subsidies.

The commission bump will be implemented gradually, with a 6% rate taking effect on April 1 before the 8% rate goes into effect on July 1. TikTok will take a smaller cut for more expensive items and some sales over $10,000. These changes are more closely aligned with, though still largely lower than, Amazon’s 8%–20% commission, the outlet noted.

Keep reading here.—EC

Labor violation complaints remain commonplace today, even in countries like the US, but in an encouraging bit of news, the Department of Labor has recovered $1.1 million in damages and back pay for 165 factory employees at an apparel plant in Los Angeles.

The settlement came after a rigorous federal investigation that found four LA clothing contractors held back overtime wages in violation of labor laws, and then attempted to cover it up.

The contractors “willfully failed to pay overtime wages” for employees who worked an average of 52 hours per week, forged payroll records, and wrote fraudulent checks to conceal their activities, investigators found.

Keep reading here.—JS