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SuccessInformatics The Science of Success
Finance & Wealth • 8 min • Aug 22, 2022

E-Commerce Unit Economics: Calculating Net Contribution Margins

Author: Marcus Vance (Wharton MBA) • Fact-Checked & Reviewed

Contribution Margin = Net Revenue − COGS − Shipping − Packaging − Paid CAC. Aim for a net contribution margin above 30% to maintain profitability.

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Written by Marcus Vance

Wharton MBA alumni, business strategist, and author at SuccessInformatics.