E-commerce · Economics
Contribution margin by channel
Published · Reviewed by The Diligence Standard Team · Updated
Amazon, Shopify, wholesale and social commerce can produce very different profit from similar revenue.
Records to reconcile
- Channel sales and refunds
- Channel-specific fees and fulfillment
- Attributed and blended acquisition cost
Warning signal
One low-margin channel creates most growth while consolidated margin hides the mix.
Transaction impact
Sustainable earnings depend on maintaining or changing the channel mix.
Response
Normalize by channel and reflect concentration in valuation and planning.