Being digitally native no longer offers an edge. Neither does beautiful branding, paid acquisition, or even AI tools.

The answer is in today’s email.

💀 Bryan Cano on Everlane’s exit + the new era (moat) for DTC

📦 Sharoon Thomas with 9 situations when warehousing works

📊 Top-five headlines from this week’s consumer news stories

Sharoon Thomas Founder, Fulfil

Should You Run Your Own Warehouse?

For most DTC brands, a 3PL is the right answer … but “most” isn’t all.

From my experience, there are nine situations where running your own warehouse probably makes sense.

1. US Manufactures 

The capital is spent. Your team touches inventory; whether you’re running full production or just assembling components. Shipping out is the last (smaller) step of what you’re already doing.

2. Has Retail Stores 

You’re managing store inventory and distribution center-to-store flow. You have to be good at supply chain anyway. Also, 3PLs consistently suck at cross-docking.

3. Lots of Personalization 

Engraving, monogramming, on-demand print, custom assembly. 3PLs are built for SKU-based picking, not per-order build.

4. Apparel Brands 

SKU counts get into the thousands once you factor size and color. You’re the customer 3PLs don’t want. Too many bins. Too much returns processing. You’ll get deprioritized at peak.

5. Hazmat 

Perfumes, candles, aerosols, supplements with alcohol, lithium battery electronics. Most 3PLs won’t take you. The ones that will require certified staff, segregated storage, and carrier pre-approval.

6. Anything > ~50 lbs 

Furniture. Fitness equipment. Dimensional weight surcharges and freight class issues mean you’re already paying premium rates. You’re better if you own the dock, LTL relationships, and lift-gates.

7. Temp Matters 

Frozen food, fresh meal kits, temperature-controlled supplements. The 3PLs that handle this are few and expensive. You’re probably already running your own freezer and tight ship windows.

8. Subscription 

If your subscription has predictable volume; same boxes, same cadence. Carriers will give you rates a 3PL can’t get on your volume alone. Even Amazon Shipping will actively want your business.

9. You’re Big 

Past a certain volume, you can hire the ops talent (ex-Amazon’s great), negotiate the carrier contracts, and run the WMS yourself. The 3PL margin you were paying becomes your margin. Most brands never get here.

If none of these describe you, outsource.

Finally, one caveat that overrides all of this: Don’t warehouse on your own if you don’t have an experienced + strong ops leader.

Whether you run inventory through your own warehouse or through a 3PL, the most important thing is visibility.

Knowing:

• Where stock is
• What it costs
• When it’s available

For every channel, at a moment’s notice.

That’s why I started Fulfil. It connects your warehouse, your 3PL, and every sales channel into one real-time view.

Want to find out if we can help you manage your fulfillment, operations, and financials better … just like we do for Ridge, HexClad, Grüns, and more?

↑ We’ll walk through your specific use case.

Bryan Cano Founder, Tempo

Shein Acquires Everlane for $100M: The End of a DTC Era

Everlane’s reported sale to Shein is more than a surprising acquisition. It is a signal that the brands built on story, taste, and cultural relevance now have to compete against companies built on speed, data, margin, and operational leverage.

This piece breaks down what Everlane got right, where the original DTC model started to crack, and what the next generation of durable brands will need to become.

Everlane represented the DTC blueprint for an entire generation of operators and founders:

• Digitally native distribution
• Minimalist branding
• Premium basics
• Transparency
• Ethical sourcing
• Beautiful CX

Shein, on the other hand, became dominant through:

• Manufacturing velocity
• Algorithmic merchandising
• Rapid SKU testing
• Supply chain responsiveness
• Operational scale

The acquisition is so surprising … because the brands are so obviously different.

That’s why I believe this is part of a much bigger story. One where the market rewards operational leverage just as much as (or perhaps even more than) brand perception.

To understand where we’re headed — and how your brand can build a moat — let’s take a quick look back.

 First Wave: 2010–2017 

This era was built on three tailwinds:

1. Cheap Meta CACs
2. Distrust in legacy retail
3. Digitally native novelty

Brands could win simply by:

• Looking better
• Communicating clearly
• Having a stronger mission

This was the golden age of:

• Everlane
• Warby Parker
• Casper
• Allbirds
• Outdoor Voices
• Away
• Glossier

The problem is many of these companies were built on media arbitrage. As long as paid social remained cheap and efficient, brands could scale rapidly and mask deeper operational issues:

• Weak retention
• Low purchase frequency
• Limited pricing power
• Shallow loyalty
• Operational inefficiency
• Lack of product defensibility

As CACs rose and capital tightened, the economics broke.

Allbirds and Outdoor Voices are just a few examples of first-wave brands that are feeling the pain.

Consumers liked these brands.

But liking a brand is not the same thing as loving it. Being digitally native is no longer a moat.

 Second Wave: 2018–2025 

The next generation learned from the first wave. This second-wave era produced brands optimized around:

• Meta ads
• Profitable growth
• Influencer marketing
• Landing page optimization
• Subscription models
• Lifecycle marketing
• User generated content
• CVR optimization

We saw brands like True Classic, OLIPOP, and Liquid Death scale through performance marketing, social-native creative, product differentiation, and creator-led distribution.

Many operators became incredibly sophisticated. The problem is, many of these 2018–2025 brands are dependent on:

• Platform-driven discovery
• Paid acquisition efficiency
• Creator arbitrage
• CRO alpha

Today, AI threatens to compress many of those advantages. Why? Because AI lowers the cost of:

• Creative
• Copywriting
• Media buying
• Merchandising
• Customer support
• Website production
• Ad iteration
• Product photography
• Personalization

In other words, execution quality is becoming commoditized.

In the last cycle, brands stood out with great creative. In the next cycle, everyone will have great creative.

So the moat shifts again …

 Third Wave: 2026+ 

We are entering a new phase of commerce.

The brands being built today are AI-native, creator-native, and operationally integrated from day one.

The winners of this era will not look like today’s DTC brands. They will be defined by:

• AI-enabled teams
• Creator ecosystems
• Algorithmic merchandising
• Supply chain agility
• Community-led distribution
• Retention infrastructure
• Data-driven personalization
• Operational efficiency

However, there’s a catch.

AI compresses margins when it commoditizes previously scarce capabilities. When everyone can instantly:

• Generate ads
• Launch landing pages
• Create UGC
• Localize
• Optimize

Then the edge is gone. The same thing already happened with:

• Transparency
• Beautiful websites
• Polished branding
• Performance marketing

Every advantage eventually gets absorbed by the market.

 “Where’s My Moat?” 

The 2010–2017 era rewarded digitally native branding. The 2018–2025 era rewarded performance marketing.

I believe this next era will reward:

1. Emotional Identity

Consumers need to feel connected to a brand beyond utility. Not just, “This is a good product.” But, “This brand represents who I am or who I want to be.”

Recent examples include Comfrt’s affiliate army + social causes, Cadence’s running events, founder content + subscription only merch, and Portland Leather Good’s Facebook Group.

2. Operational Excellence

Infrastructure is as important as branding.

• Inventory health
• Shipping speed
• Forecasting
• Supply-chain agility
• Contribution margin discipline
• Merchandising velocity

These are no longer back-office functions. They offer real and legitimate advantages in the market.

In 2023–2025 we saw the rise of the financially literate CMO. I believe we’re going to now see the rise of the operationally literate CMO.

3. Retention

The great brands of this new era will build:

• Habits
• Memberships
• Loyalty systems
• Replenishment loops
• Affiliate communities
• Creator flywheels

4. Adaptability

For the last decade, ecommerce brands scaled by adding specialized talent.

But AI will collapse many of those workstreams. The next generation of ecommerce companies will be built around highly leveraged operators instead of large fragmented teams.

• Fast learning loops
• Strong systems
• Clear positioning
• High operational leverage
• Speed + adaptability

The brands that redesign themselves around this reality early will have a massive advantage over the next decade.

 Long Story Short … 

The Everlane acquisition is not just about Everlane.

Every generation of commerce eventually confuses its temporary advantage for a permanent moat. 2010–2017 brands believed being digitally native was enough. 2018–2025 brands believed the same about performance sophistication.

Now AI is flattening both.

The brands that win next won’t just be good at marketing.

They’ll be companies that move fast, understand their customers, run efficient operations, and still make people feel deeply connected to the brand.

The next winners will likely look less like “brands with good marketing” and more like vertically integrated adaptive commerce systems with emotional loyalty layered on top.

That is where the market is moving. And many brands are far more exposed to this transition than they realize.

Bryan Cano is a marketing operator with deep experience scaling high-growth consumer brands, including True Classic. His background spans paid media, creative strategy, retention, partnerships, brand positioning, and the systems required to grow profitably. Connect with him on LinkedIn, X (Twitter) or through his newsletter.

THE FEED

​How to Get New Reach on Meta: Tactics & Data for Ecommerce Marketing​

​10 Categories Worth Building a Brand: Mega Trends in Health & Wellness​

​From AI Fear to AI Edge: Curiosity Over Technical Skills​

The Trends

Curated by the editor of CPG Wire, the five top stories in commerce and DTC.

1. Roxberry Closes $4M Round: PR Newswire​

Roxberry, a modern soda brand designed specifically for kids, secured $4M in funding from undisclosed investors.

The Columbus-based beverage brand grew 900% in 2026 and secured distribution at Kroger, Meijer, H-E-B, and Walmart. One of the company’s founders, Andy Sauer, is also the CEO of Garage Beer, one of the fastest-growing beer brands in the United States. Previous backers include Habitat Partners.

2. Graza Doubles Down on Snacks: Twitter​

Graza, the fifth largest olive oil brand in the U.S. after just four years, is moving deeper into snacks with its revamped potato chip line. Graza launched its potato chip line in 2024 but the company recently upgraded the packaging, added more flavors, and broadened distribution.

The chips are cooked in 100% extra virgin olive oil and are available nationwide at Target. Graza using its brand equity to expand into categories with higher velocites is a smart play.

3. Rogue Secures $2.5M: Business Wire​

High-protein snack brand Rogue closed a $2.5M funding round led by Science, Inc. Simple Food Ventures, Uncommon VC, and several other strategic investors also participated.

Founded by Tommy Riggs and incubated by Science, Inc., Rogue is gearing up to launch at 2,800 Walmart stores in July. Science, Inc. is best known for incubating Dollar Shave Club and Liquid Death.

4. Sazerac Backs SipMargs: Food Dive​

New Orleans-based spirits giant Sazerac took an equity stake in creator-led cocktail brand SipMargs. The two companies also formed an exclusive sales & distribution partnership in the U.S.

SipMargs relaunched in early 2025 with $3M in backing from Alix Earle, Palm Tree Crew, Michael Rubin, Brad Garlinghouse, and several others. In March, Sazerac took an equity stake in Kendall Jenner’s 818 Tequila.

5. Harken Sweets Adds Investors: Business Wire​

Better-for-you candy brand Harken Sweets added Taste Tomorrow Ventures and GRT SHT Ventures to its cap table. The company also raised funding from Selva Ventures earlier this year.

Founded in 2022 by former CauliPower COO Katie Lefkowitz, Harken is launching at Costco Northwest this week and will be in 7,500+ doors by end of year.

With thanks and anticipation,
Aaron Orendorff
🤓 Chief Executive Officer

P.S. (Disclaimer): Special thanks to Fulfil for sponsoring today’s newsletter.

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