Expected contribution profit

expected_contribution_profit

Description: What an order will earn after expected returns, costs and ads. You know it on the day the order is placed. It counts what is already sold, not sales still to come.
When to use: Use it to see which products, orders and channels make money. It matters most where margins and return rates differ a lot between products. That is more true for clothing than for jewellery. To see sales alone, use Net sales. Recent days move a little as real carrier costs and returns replace the estimates.
Formula: Net sales, minus Expected returns. Take off Cost of goods only for items we expect to keep, since a returned item goes back on sale. Take off what it costs to handle Expected returns, with shipping back. Then take off shipping out, payment and platform fees, and packaging. Last, take off the order's share of Marketing spend.

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