THE QUESTIONS MOST FOUNDERS SKIP
The product viability checklist is not a market research template. It is a confrontation. It forces you to answer the questions every DTC founder should be able to answer before they place their first inventory order — and most cannot.
A product can be beautiful, well-designed, and genuinely useful and still be a bad DTC product. Low margins, low purchase frequency, a crowded category, no defensible differentiation — these are product problems, not marketing problems. This checklist surfaces them before you spend capital finding out.
Section 01 — Market Validation
Is there demonstrable demand for this product category (search volume, existing brand revenue, community size)?
Is the category growing or declining? What is driving the growth or decline?
Who are the three closest competitors and what do customers say they wish was different about those products?
Have you spoken to 10 potential customers in the last 30 days?
Is the target customer willing to pay the price the unit economics require?
Is the problem your product solves felt regularly enough to justify a DTC channel?
Are there any regulatory, certification, or compliance requirements for this category?
Is the TAM large enough to support the revenue ambition without owning the whole market?
Section 02 — Unit Economics
What is the target gross margin? Is it above 60%? If not, what is the path to 60%?
Have you modelled COGS at MOQ (minimum order quantity) and at 10x MOQ?
What is the all-in landed cost including shipping, duties, and 3PL?
What is the estimated CAC at the target channel mix? Is there a credible path to LTV/CAC above 3:1?
What is the natural purchase frequency? Is it monthly, quarterly, or annual?
What is the realistic return rate for this product category? Is it built into the model?
What is the payback period on CAC? Is it under 12 months?
Have you modelled a downside scenario where CAC is 40% higher than target?
Section 03 — Product Differentiation
Can you complete this sentence honestly: "Our product is structurally better than alternatives because ___"?
Is the differentiation based on engineering/formulation/manufacturing — or only on branding?
Could a well-capitalised competitor replicate the product in 12 months?
Is there any IP, trade secret, or exclusive supplier relationship that creates a defensible advantage?
Does the product create a habit or behaviour that increases switching cost over time?
Is the brand positioning occupying a position no existing competitor holds?
Is there a visual identity or product design that is meaningfully distinctive in the category?
Does the product lend itself to organic sharing and word-of-mouth at the product experience level?
Section 04 — Retention Architecture
Is there a structural reason for repeat purchase built into the product (consumable, wearable, subscription)?
If the product is a durable good, what is the plan for manufacturing repeat purchase occasions?
Is there a product line expansion roadmap that creates future purchase occasions?
Does the product lend itself to gifting as an acquisition and retention channel?
Is there a subscription or auto-replenishment model that fits the category?
What does a customer's second purchase look like — and how long does it take?
Are there adjacent SKUs that serve the same customer without requiring new audience acquisition?
Is the post-purchase experience designed to create an emotional relationship with the brand, not just the product?
Section 05 — Operational Readiness
Have you identified and qualified a manufacturer? Have you received a sample?
Is the supply chain resilient to a 30-day manufacturing delay?
Do you have a 3PL partner selected or in conversations?
Is the product fragile, temperature-sensitive, or oversized in ways that will create fulfilment complexity?
What is the minimum viable inventory to launch without stockout risk?
Do you have the capital to fund the first inventory order and 90 days of operating costs simultaneously?
Is the team capacity adequate to handle customer service at 3x projected launch volume?
Is there a founder or operator with the specific domain knowledge this category requires?