The big issue for M is that nearly half of Americans work in a small business so have a reasonable grasp on how to run a business from daily experience. Layer on the entrepreneurs, the investors and the rest of the finance community (economists, valuation experts, bankers, accountants) and popular reality shows like shark tank, well there are a lot of people who can eyeball a situation and say...that doesn't add up.
And Americans are a vocal bunch and have not been shy to savage M's business with very negative reviews from across the political spectrum.
As for the economics, I would bet on the following arrangement:
-Netflix extended M some sort of loan (aka passive investor) to source her products. (It is quite telling that Netflix did not give M access to the same third-party manufacturer Netflix uses to make its highly rated Bridgerton food and drink product range)
-M then pre-paid Snow to make and ship products. Snow does this and takes its agreed-upon cut of any profit and remits any balance to M. Snow would also levy additional charges if M wanted last minute changes not covered in the original contract.
-M then needs to cover all additional costs (marketing, advertising, PR, Netflix loan repayment with interest).
I suspect this is why M attempted to cut costs by using Snow, despite its poor ratings so she could pay as little as possible to source products. Not quite sure how there is any profit from this arrangement, if this is what is happening.