Ecommerce Profitability: A Per-Order Decision Map
Build contribution per order, then test fees, shipping, returns, acquisition, fulfilment and product mix one decision at a time.
List of all related Margin101 business guides.
Build contribution per order, then test fees, shipping, returns, acquisition, fulfilment and product mix one decision at a time.
Translate your actual provider contracts and statements into percentage, fixed, recurring, refund and fulfilment components.
Compare user-entered fixed, per-order and loaded-labour costs while keeping capacity and service-level trade-offs explicit.
Reconcile stock, demand assumptions, supplier dates, buying budget and downside cash before committing to a seasonal purchase.
Test basket size, qualifying share, shipping cost and order-change assumptions around a contribution-preserving threshold.
Separate return frequency from revenue loss, recoverable value, fee reversals, refund timing and reverse-logistics cost.
Set break-even and target acquisition ceilings from contribution before advertising rather than revenue alone.
Use a neutral fixed-plus-percentage scenario to see why the same fee schedule produces a different effective rate at different order values.
Translate finite subscriber scenarios into inventory commitments without treating churn or demand as known.
Put shipping support, expected returns and acquisition cost on one order-contribution basis before choosing an offer.
Compare channel contribution, cash timing, fulfilment and cannibalisation boundaries before expanding a direct brand.
Compare fulfilment structures using aligned order volume, fees, handling cost, service scope and capacity.
Define a bounded offer cadence, test no-lift economics and review full-price recovery without making behavioural promises.
Reconcile product, fulfilment, platform, payment, returns and acquisition costs without double counting the fee stack.
Compare product rows using contribution, weighted margin and total contribution rather than revenue alone.
Rank comparable SKUs by contribution per order or total contribution while keeping product-mix and discontinuation decisions separate.