BizFalcon AIHow to Calculate Contribution Margin for E-commerce, With a Worked Example
Gross margin tells you how the catalog does on average. Contribution margin tells you which products pay the bills, and which ones only look profitable.
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Profit math for e‑commerce operators
Contribution margin, SKU economics, cohort LTV and acquisition payback, worked through on a sample store.
SKU Rationalization: Find the Products Eating Your Profit
Most catalogs follow a steep curve: the top fifth of products funds everything, and a long tail burns cash on storage, returns and ad spend.
Read article →LTV Cohort Analysis From a Single CSV Export
You do not need a data warehouse for cohort LTV. One orders export with customer ID, date and net revenue is enough to see whether acquisition pays back.
Read article →Blended ROAS Hides Rising Acquisition Costs. Compute CAC and Payback Instead
Blended ROAS mixes new customers with repeat buyers who would have purchased anyway. It can hold steady while your acquisition engine slows down underneath it.
Read article →Dead Stock Math: What Unmoving Inventory Costs You
Inventory that does not move looks like an asset on the balance sheet. In practice it is a slow leak: tied-up cash, storage fees and shrinking resale value.
Read article →Discount Leakage: How Promo Codes Cut Your Margin
Every discount code has one job: create orders that would not exist otherwise. Most codes fail that test and just make existing orders cheaper.
Read article →How to Find Which Discount Code Loses Money
A step-by-step method for ranking your discount codes from an order export, and the break-even rule that tells you which ones to retire.
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