Ann: Quarterly Report, page-119

From a big picture perspective, the number of orders, cases shipped and revenue has steadily increased Q-o-Q since the beginning of the calendar year 2020. All have shown Q-o-Q growth which IMO supports the continued growth thesis for the firm's business model.



As@Kokomo97 eluded to there were discounts offered to new users last year, though the difference in the figures that I believe you are referring to stems from a decrease in the revenue per case shipped ('revenue/case') earned by the firm. When comparing that metric on a quarterly basis it is clear that the amount earned per case shipped has been gradually declining since Q1 2020 (FY20 Q3).



As volume shipped increases DW8 is able to lock in ever lower shipping rates due to the tiered shipping fee structures it negotiated with its service providers. That was a critical aspect of the firm's supplier pricing model and Dean communicated that quite clear early on. This is also why different posters continue to highlight the importance of an increasing level of volume for the firm. More volume = more pricing power.

Dean also mentioned repeatedly, including in his last Youtube interview, that he is passing these cost savings (largely) on to his clients (for the time being, one should note). That is why the revenue/case shipped is lower and the total revenue figure earned hasn't changed that much vs the prior qtr despite cases shipped being up substantially. Meanwhile, the clients' cost of using DW8s services has been further lowered, thereby further increasing their cost savings and the competitive gap of DW8s model vs substitute options. DW8 mgmt is using a classic pricing strategy to gain market share and in doing so ties clients to their model as it replaces their traditional service providers (by disrupting price + service offering). Plenty of successful tech firms used the same in the past, so there's precedent if you wish to research it. Don't worry, this decrease in revenue/case won't continue indefinitely.

Just to put the magnitude of this into perspective: If this past quarter would have earned the same revenue/case as the prior quarter or FY20 Q3, then the revenue would have been $974K or $1.47M, respectively. Instead, that money went largely to an ever-increasing client base putting more volume through the firm as the cases shipped during the slowest quarter of the year demonstrate. Clients whose cost just went done a bit more than initially expected are also more likely to spread their positive experiences via word of mouth. All of this bodes quite well for the WD Market as users will be able to enjoy lower rates than previously posted on the publicized rate card. I reckon that's why the card was removed, though that's more speculation or mosaic theory -- depending on your perspective. DYOR, GLTAH.