Metrics book

Expected contribution margin

expected_contribution_margin

Description

Expected contribution profit as a share of Net sales. It lets you compare products, channels and countries of any size.

When to use

Use it to see where the shop earns well and where it does not. It matters most when margins and return rates differ a lot between products. To compare on the goods alone, use Gross margin.

Formula

Expected contribution profit divided by Net sales.

Category
Profit

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