Wholesale now 57% of brand revenue and most profitable: Joor data

Wholesale accounts for 57% of brand revenue on average and remains the most profitable channel for the majority of fashion brands, according to 2024 data from wholesale management platform Joor. The figures, based on transaction data and a survey of brands using the platform, show that 52% of brands identify wholesale as their most profitable channel, while average order-to-ship time fell to 102 days. The data challenges the narrative that direct-to-consumer is the dominant path to profitability and suggests brands are finding renewed value in wholesale relationships despite years of investment in owned channels.

Why is wholesale still the most profitable channel for brands?

The profitability of wholesale for more than half of brands reflects several structural advantages that persist even as direct-to-consumer has matured. Wholesale allows brands to reach customers without shouldering the full cost of customer acquisition, retail operations, inventory risk, and returns management. Multi-brand retailers absorb much of the marketing spend required to drive traffic, while brands benefit from the retailer's established customer base and geographic reach.

The 57% revenue share for wholesale indicates that for many brands, the channel remains not just profitable on a per-transaction basis but also significant in scale. Brands that have invested heavily in direct-to-consumer over the past decade are now re-evaluating channel economics as digital customer acquisition costs have risen and the operational complexity of running retail, whether physical or online, has become clearer. Wholesale offers a counterbalance, delivering volume without the overhead of owned retail infrastructure.

What does a 102-day order-to-ship cycle mean for planning?

The reduction in average order-to-ship time to 102 days represents a tightening of the wholesale cycle, allowing brands and retailers to operate with more flexibility and less risk. A shorter cycle means less capital tied up in inventory that has been committed months in advance, and greater ability to respond to demand signals before production is finalised. For brands, this can reduce overproduction and markdown risk. For retailers, it narrows the window during which consumer preferences might shift, making buy decisions less speculative.

While 102 days still represents more than three months from order to delivery, the trend toward shorter lead times aligns with broader supply chain efforts to improve speed and responsiveness. Brands that can compress this window further gain a competitive advantage, but doing so requires coordination across design, production, and logistics. The Joor data suggests the industry is making progress, though the pace of improvement will vary depending on product category, sourcing geography, and manufacturing partnerships.

How should brands balance wholesale and direct-to-consumer?

The Joor findings suggest that an effective channel strategy is not about choosing one model over the other, but about understanding the distinct economics and roles of each. Direct-to-consumer offers control over brand presentation, customer data, and margins on individual transactions, but comes with high fixed costs and variable customer acquisition expenses. Wholesale sacrifices some margin per unit but delivers scale, market access, and shared risk.

Brands need to evaluate channel profitability not just on gross margin but on a fully loaded basis that includes marketing, fulfilment, technology, and working capital. The data showing 52% of brands find wholesale most profitable suggests that when these costs are accounted for, the wholesale model often delivers stronger returns. This does not mean abandoning direct channels, but it does mean sizing them appropriately and avoiding the assumption that owning the customer relationship always translates to better unit economics.

Strategic considerations include:

• Assessing true customer acquisition cost for direct channels and comparing to wholesale margin give-up.
• Using direct-to-consumer for brand building, product testing, and full-price selling, while relying on wholesale for volume.
• Segmenting product assortments by channel to avoid direct competition between owned and wholesale distribution.
• Investing in tools and processes that make wholesale operationally efficient, reducing friction in ordering, fulfilment, and communication.

What are the risks of over-indexing on wholesale?

While the Joor data highlights wholesale's profitability, brands must also consider the strategic risks of depending too heavily on the channel. Wholesale cedes control over pricing, merchandising, and customer experience to retail partners, and brands have limited visibility into end-customer behaviour. Retailers may discount products aggressively, diluting brand equity, or may shift buying priorities, leaving brands exposed if a major account reduces orders.

The concentration risk is real: a brand that derives the majority of revenue from a small number of wholesale partners is vulnerable to changes in those relationships. Retailers themselves are under pressure, and department store consolidation and closures over the past decade have reduced the number of significant wholesale doors available to brands. Diversification across both channels and wholesale partners is a hedge against this risk.

What does this mean for technology investment priorities?

If wholesale remains the dominant and most profitable channel for many brands, technology investment priorities need to reflect that reality. Platforms that streamline wholesale operations, improve communication with retail buyers, and provide better visibility into order status and inventory levels deliver direct return on investment. The 102-day order-to-ship figure underscores the importance of systems that can manage complex, multi-month workflows with accuracy and transparency.

Brands should also consider how technology can help them extract more value from wholesale relationships without increasing operational burden. This includes tools for line sheet creation, order management, and integration between wholesale and inventory planning systems. The goal is to make wholesale as efficient and data-rich as direct-to-consumer, rather than treating it as a legacy channel that runs on spreadsheets and email. As wholesale continues to represent the majority of revenue for many brands, the case for investing in the systems that support it becomes stronger.