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.