Contribution Margin

Using Contribution Margin in E-commerce

E-commerce platforms analyse the contribution margin to understand the profitability of different products, aiding in pricing and inventory management decisions.

Benefits of Analysing Contribution Margin for E-commerce

  • Profitability Analysis: Assessing the profitability of individual products or services.
  • Pricing Strategy: Devising effective pricing strategies to enhance profitability.
  • Inventory Management: Informed decisions regarding inventory levels based on profitability.

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