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Driving Profitability with Growth: Ecommerce On Tap Interviews Alek from Settle

Ecommerce On Tap

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Understanding Contribution Margin and Profitability in Ecommerce

This chapter explains the concept of contribution margin and its impact on profitability in ecommerce. It explores different methods to calculate contribution margin and emphasizes the significance of bearable costs. It suggests that a minimum contribution margin of 50% is ideal, with a 25% margin indicating strong business potential.

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