Opportunity-Led Omnichannel Expansion
Combine direct cash flow with overlooked channels that widen access
- Difficulty
- Advanced
- Time to result
- ~months to results
- Steps
- 5
- Confidence
- 96%
Map the different places customers can discover and buy the product, then give each channel a deliberate role. A direct-to-consumer site can provide immediate cash and customer access, while wholesale, marketplaces, and international accounts can add reach and revenue streams despite lower margins or slower payment. Look beyond the outlets favored by close competitors, especially when an ignored retailer serves customers the brand wants to reach. Evaluate each channel on product fit, margin, volume, fees, and operational burden rather than pursuing distribution for its own sake. Where channel conflict or economics require differentiation, reserve certain products for the website or create retailer-specific products. Schmidt used this broad-access approach at Schmidt's Naturals and now looks for similar channel awareness in consumer investments.
Origin
Schmidt began with local wholesale, added direct-to-consumer sales about a year later, embraced overseas interest, and pursued mass retailers that some natural-brand competitors avoided. She described omnichannel distribution as central to the company's strategy. Extracted from The Foundr Podcast.
Core principles
- 01Different channels can solve different business needs
- 02Direct sales can help finance slower wholesale operations
- 03Overlooked channels may reach customers competitors ignore
- 04Channel fit matters more than following a universal formula
- 05Exclusive products can protect channel economics
How to run it
- 1
Map customer access points
List direct, retail, marketplace, and international outlets where the intended customer already shops. Separate plausible access from channels that simply look prestigious.
Pro tip Include channels competitors avoid if those outlets genuinely serve your target customer.
Watch out Do not assume a niche category must remain in niche stores.
- 2
Assign each channel a job
Define whether a channel is expected to generate cash quickly, widen reach, create credibility, or add a new revenue stream. Use that role to judge performance.
Pro tip A direct channel can help fund operations affected by wholesale payment terms.
Watch out Wholesale revenue may arrive later and at lower margins than direct sales.
- 3
Test beyond the default channel
Add one suitable distribution outlet at a time and learn its buying process, fees, lead times, and operating demands. Prove that the product can perform before expanding further.
Pro tip Treat unsolicited retailer or overseas interest as a testable lead.
Watch out Fear of unfamiliar retail processes can hide a strong opportunity.
- 4
Differentiate the assortment
Decide which products belong everywhere and which should remain direct-only or become retailer-specific. Use assortment design to preserve fit across channels.
Pro tip Consider channel-exclusive products when one universal assortment creates conflict.
Watch out Do not force the same product and economics into every outlet.
- 5
Expand where evidence holds
Increase distribution when customer demand, channel economics, and operations support it. Continue comparing reach and cash benefits against margin and complexity.
Pro tip Pursue international interest when the commercial case is credible, even if it arrives early.
Watch out More outlets are not automatically better if the operating load overwhelms the business.
In the wild
Schmidt's Naturals entered local wholesale first, then built its direct-to-consumer website. Schmidt said the immediate direct income helped fund other operations while wholesale involved payment terms and lower product margins. The brand later expanded into chains, international accounts, and mass retailers.
→ The channels complemented one another: direct sales improved cash availability while retail and international distribution widened reach.
Schmidt wanted natural products to reach people beyond a niche audience. She viewed Walmart as an opportunity even though she said some competing brands frowned on selling there, because it reached customers those competitors were missing.
→ A dismissed channel became part of a broader access strategy rather than being rejected for image reasons.
Common mistakes
Treating direct-to-consumer as the only model
A direct channel can be powerful, but Schmidt argues that suitable consumable products may forgo meaningful reach by never testing retail.
Ignoring channel economics
Retail introduces lower margins, fees, payment terms, and extra work. Expansion should account for those constraints rather than counting distribution alone.
Copying competitors' channel boundaries
Competitors may avoid an outlet for reasons unrelated to your customer or strategy. Evaluate the opportunity directly.
Is it for you?
Best for
It is best for repeat-purchase consumer products that can support retail volume as well as direct sales.
Not ideal for
It is not ideal for products whose economics, delivery model, or buying experience make physical retail a poor fit.
From the transcript
“once we kicked the d to c into action then you know we had that immediate income that we could then 10 30 use to…”
“it just means um distributing your products across different distribution outlets”
“i looked at channels that the competition wanted nothing to do with”
From the episode
357: My Hobby Resulted In A 9-Figure Exit: Jaime Schmidt of Schmidt Naturals
Jaime Schmidt