Differentiator

The metric Shopify doesn't show you

Contribution Margin = Gross Profit minus shipping, payment fees, transaction fees, and taxes. It's the money left after fulfilling each order — before overhead and ad spend. No competitor surfaces it.

What gets deducted in Layer 2

Gross Profit$21,730

− Shipping Cost−$3,200

− Transaction Fees−$483

− Payment Processing−$966

− Tax−$1,890

Contribution Margin$15,191

CM %31.5%

Why it matters

Unit economics clarity

A positive CM means every order contributes to covering overhead. A negative CM means you lose money on every sale — regardless of ad spend.

Fulfillment cost visibility

CM isolates shipping and payment processing costs. If CM is low but gross margin is healthy, you have a fulfillment problem, not a pricing problem.

Better ad decisions

CM feeds into POAS (Profit on Ad Spend). Without CM, POAS can't exist — and without POAS, you're optimizing ads blindly.

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