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The Margin Erosion Crisis: Why Every $1M in DTC Growth Now Costs $35,000 in "First-Party" Revenue Leaks
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The Margin Erosion Crisis: Why Every $1M in DTC Growth Now Costs $35,000 in "First-Party" Revenue Leaks

For every $1 million in DTC revenue, mid-market brands lose roughly $35,000 to first-party fraud and chargeback misuse. These "silent" revenue leaks go far beyond refunds, eroding EBITDA through lost acquisition costs, fulfillment expenses, dispute fees, and increased processor risk. As top-line growth continues, unaddressed chargebacks now represent a six-figure margin loss for scaling brands unless defended with automated, data-driven infrastructure.

Ed Crowther
Ed Crowther
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