Executive Answer

How do you improve D2C contribution margin?

Reconstruct the complete order P&L, identify the largest annualized leak, and repair economics before increasing acquisition.

Direct answer

D2C contribution margin improves when realized price, product cost, fulfilment, payment fees, returns and CAC are managed as one system. Begin with CM1 and CM2 by SKU, channel and cohort.

Common mistake

Optimizing ROAS while ignoring discounts, returns, shipping subsidy and first-order contribution.