Urban Roots - D2C & E-commerce

Scaling a D2C Brand by Mastering Unit Economics

Bookkeeping
Virtual CFO
Scaling a D2C Brand by Mastering Unit Economics

Key Results

  • Increased overall gross margin from 35% to 55%.
  • Reduced shipping costs by 18% by renegotiating with logistics partners.
  • Achieved profitability and became self-sustaining, reducing reliance on external funding.

The Challenge

Urban Roots, a popular D2C artisanal food brand, was growing fast but its profits were not keeping pace. They lacked clarity on their SKU-level profitability and were struggling to manage cash flow due to high shipping costs and marketplace fees.

The Solution

Our team implemented a robust bookkeeping system using Zoho Books to enable accurate, real-time tracking of inventory and COGS. We then performed a deep dive into their unit economics, creating a dashboard that showed the true contribution margin for each product on each sales channel (Shopify, Amazon, etc.). This analysis revealed that certain channels, despite high volume, were unprofitable.

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