# Solbari, Lulus, and MariMed Drive Growth With Wholesale Channel Expansion—11% Revenue Gain Reported *Three physical-product brands accelerate revenue by opening new wholesale doors instead of chasing direct-to-consumer ad spend.* By **Jenny Huang Goodman MPA MSc MHSA, Principal** — The Stash Edge, Hako Shikin LLC. Published 2026-06-03. Canonical: https://www.pops4.com/stash/articles/solbari-lulus-marimed-pattern-2026-06-03t00-6 Subject: Solbari, Lulus, MariMed (pattern) Tags: wholesale expansion, distribution strategy, channel diversification, retail partnerships, physical products, dtc alternatives --- Solbari hired a dedicated Head of Sales to launch U.S. wholesale expansion, Lulus opened storefronts inside Amazon and Victoria's Secret, and MariMed posted **11% wholesale revenue growth** in its latest quarter, according to Yahoo Finance. All three named wholesale channel diversification as the primary mechanism for their next revenue phase. The move reverses a decade of DTC-first orthodoxy. Instead of bidding up Facebook CPMs or launching another email flow, these brands secured shelf space—physical and digital—inside established retail environments with existing foot traffic. Solbari's new sales hire focuses on placing sun-protective apparel in specialty outdoor and dermatology-adjacent retailers. Lulus negotiated co-branded storefronts on Amazon and a capsule partnership with Victoria's Secret, putting occasion dresses in front of customers already shopping for adjacent categories. MariMed expanded cannabis product distribution across state-licensed dispensaries, riding retailer credibility instead of building its own. Wholesale works because it converts someone else's traffic at someone else's acquisition cost. The retailer has already paid rent, staff, and merchandising. The brand pays a margin haircut—typically **40% to 60%** trade discount—but eliminates CAC, reduces return liability, and accesses customers who never visit a branded site. For physical products with strong unit economics and repeat purchase behavior, wholesale margin dilution is cheaper than paid social in year two and beyond. The underlying mechanism is distribution arbitrage: the brand borrows trust and traffic from the retailer's existing relationship with the customer. A shopper discovering Lulus dresses inside Victoria's Secret benefits from category adjacency and implied endorsement. The retailer curated it, so the shopper infers quality and fit. This cuts the consideration friction that kills cold DTC traffic. Wholesale also creates a compounding effect—customers who discover the brand in-store later buy direct, improving lifetime value without increasing acquisition cost on the DTC side. A small physical-product brand can run the same play with **$2,000** and six weeks. First, identify **10 to 15** regional retailers whose customer base overlaps with your product but does not compete directly—yoga studios for a hydration brand, bike shops for a recovery tool, dermatology offices for a sun-care product. Second, build a one-page wholesale linesheet: product image, SKU, wholesale price, retail price, MOQ, and lead time. Third, cold-email the buyer with a **two-sentence pitch**: "We sell [product] to [customer type]. I'd like to send you a sample and a net-60 terms sheet." Ship the sample with the linesheet and a **15% off first order** incentive. Follow up in one week. Close three accounts in month one, deliver on time, and ask each retailer for an introduction to one similar store. Repeat quarterly. By month six, you have **12 to 18** wholesale doors generating **$1,200 to $3,600** monthly revenue at **48% margin**, with zero ad spend and compounding word-of-mouth among retail buyers. Wholesale also de-risks platform dependency. Brands that live entirely on paid social face margin compression every time Meta raises CPMs or iOS updates attribution. Wholesale revenue flows independent of algorithm changes, and retailer reorders create predictable monthly cash flow that smooths DTC seasonality. MariMed's **11% wholesale growth** came during a quarter when many DTC cannabis brands reported flat or declining direct sales, demonstrating the channel's insulation from digital ad volatility. The next move is to treat wholesale as a portfolio, not a single channel. Solbari's U.S. expansion targets specialty retail, Lulus balances Amazon's volume with Victoria's Secret's brand halo, and MariMed diversifies across state markets to manage regulatory risk. A small brand should similarly split wholesale efforts: **50%** into independent specialty retailers for margin and positioning, **30%** into regional chains for volume, and **20%** into online marketplaces like Amazon or Faire for geographic reach. This mix protects against any single retailer cutting orders and creates multiple proof points for future fundraising or acquisition conversations. ## The takeaway Wholesale converts someone else's traffic at their acquisition cost—trade a margin point for zero CAC and compounding retailer credibility. --- ## Publisher **Hako Shikin LLC** — Virginia Beach, Virginia. Founded 1997. ASI 217876 · DUNS 18-204-6339. Principal and author: **Jenny Huang Goodman MPA MSc MHSA**. - Author: https://www.huanggoodman.com/about - LLM context: https://www.pops4.com/stash/llms.txt - MCP endpoint, for AI agents: https://mcp.pops4.com/mcp - Client dashboard: https://dashboard.pops4.com/ - Catalogue: 70,000+ products, 200+ brands