1800DTC BFCM Playbook
[ Chapter 08 · Part 2 ] Operations, Fulfillment & Inventory

Nomatic

Nomatic

An operator spotlight from a VP of Marketing & Growth on the ops side of a bulky, high-ASP category: tariffs, freight math, and the working capital a BFCM order really ties up.

[ Brand contributor ]
Nate Benner Nomatic Nate Benner VP of Marketing & Growth
“With products as large as ours, air-freighting is our ‘break glass in case of emergency.’ The whole game is planning far enough ahead that you never have to do it.”

This brand is independent of the chapter’s sponsor and of every other brand in the playbook.

Overperformed The bottom-up forecast Building demand bottom-up by channel surfaced blind spots in the top-down plan. Reconciling the two got the right depth on the right SKUs, just in time for BFCM.
Underperformed Too much inventory Days-inventory climbed from 224 to 280 and stock sat high through H1, tying up cash exactly as tariffs inflated landed cost. Long on working capital at the worst time.
[ Tariffs & landed cost ]

The Spike Was Real. So Was the Refund.

Landed cost jumped in 2025, almost entirely on tariffs, with IEEPA the bulk of it. Nomatic rode it out rather than re-regioning, and recovered the large majority through refunds in mid-2026. Chasing a new country to dodge a temporary duty would have cost more in lead-time and quality-ramp risk than the duty itself.

Landed cost, 2024 → 2025<3% → ~8%of revenue, driven by import duties
Import duties~3× shareof revenue vs. the prior year
2026 outlook~ 2024better than 2025 with IEEPA removed and refunds collected
[ The working capital reality ]

Half a Year of Cash, Fronted per Dollar of Inventory.

The PO deposit goes out in July; product builds and moves by sea, lands Sep–Oct, sells Nov–Dec, and the wholesale slice doesn't turn to collected cash until Jan–Feb. Receivables are fast, it's inventory that ties up the money.

Days-inventory224 → 2802024 → 2025 · ~7–9 months on the balance sheet
Receivables2–3 wksmarketplaces pay out fast
Cash conversion cycle~5 → ~6 monormal year → 2025, on trade terms
Peak inventory+50%above mid-year trough by October

Supplier credit is the one thing that shortens the cycle: folding in factory financing (payables plus goods received not yet invoiced) pulled 2025 from +6 months to roughly cash-neutral on paper.

[ The bulky-category lens ]

Freight Is the Whole Game.

12–15%of revenue on outbound shipping to customers alone
1–2%of revenue on inbound freight. Fill the ocean containers to the brim

The moment you can't fill a container, or can't fulfill from the closest location, shipping cost can double or triple and take the whole margin with it. That's the math a luggage or apparel brand running BFCM never has to face at the same scale.

One lever that works: discounted product bundles nested into a single box. It adds real customer value (a slight discount on a higher AOV) while saving the cost of sending multiple parcels.

[ Where the risk concentrates ]

Protect the SKUs That Are the Business.

The Travel Pack~30%of the business and never allowed to stock out
Top 20 SKUs~80%of sales. Take care of these and you're in good shape

Stock bottoms out in December, right as demand peaks. The most exposed SKUs are the highest-velocity color and size variants.

[ The 2026 plan ]

Three Changes for Next Year.

01 · SourcingWith IEEPA removed and refunds collected, plan 2026 landed cost back near 2024 levels rather than budgeting for the 2025 spike.
02 · InventoryHold a leaner peak and protect cash rather than repeating the 2025 overstock.
03 · FinancingStay off Wayflyer-style facilities and fund through factory terms Nomatic can actually service. Interest expense ran under 2% of revenue in 2024, ~3% in 2025, and near 5% into H1 2026.