How to Make a Good Gross Profit

In e-comm for us that looks like you know a dollar in or whatever like our revenue and then there's our cost of our products so the cost of goods sold. For every sale we just cut the dollar in half basically it's like that's what we get to keep before paying for everything else such as marketing people rents etc. Contribution margin considers all of the other variable costs that go into making the sale including things like the marketing perhaps commission transaction fees. If you're selling a heavy large product at a low cost you're going to have a hard time getting gross margin in line if you're selling a light expensive product maybe like a something carbon fiber accessory or a wallet

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