How to Design Your Ecommerce Forecast (3 Rules)
Ecommerce Playbook: Numbers, Struggles & Growth
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E-Commerce Brands - Are You Trying to Turn Fixed Costs Into a Percent of Revenue?
When you attempt to turn fixed costs into a percentage of revenue, what you do is you miss the reality that that percentage decreases as revenue grows. So how do you account for the inelasticity of a fixed cost in thinking through that CAC percentage? Because this is often where I see people, they miss the fact that the way to generate incremental profit is to scale beyond fixed costs to actually spend out of it.
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