Unit economics5 guides · 1 case study
Unit economics guides for DTC brands
Break-even ROAS by SKU, contribution margin, CAC payback, returns and free shipping thresholds: the numbers that decide whether growth makes money.
Unit economics guides
Unit economics
Unit economicsContribution margin for DTC brands: CM1, CM2, CM3 and the number that decides your ad budget
Gross margin hides shipping, fees, returns and discounts. How to calculate CM1, CM2 and CM3 for an ecommerce brand, with a worked P&L, and why CM2 should set your ad budget.
Unit economicsYour ROAS looks good. So why isn't the business making money?
A 3x ROAS can make money on one product and lose it on another. How to calculate break-even ROAS for every SKU, what a sale does to the math, and where to move budget.
Unit economicsHow to Set a Free Shipping Threshold That Raises Profit, Not Just AOV
Most free shipping thresholds are copied from competitors. How to set yours from your order value distribution, real shipping costs and margin, and the sales tax twist.
Unit economics