Blog - Economics
Economics
All articles on Economics.
Contribution Margin in Ecommerce: The Number Behind Every Growth Decision
Contribution margin in ecommerce explained: the formula, a worked example, the three margin layers, and how it sets your break-even ad spend.
Customer Lifetime Value in Ecommerce: How to Raise It, Not Just Measure It
Customer lifetime value in ecommerce, measured on margin instead of revenue: how to calculate it for a Shopify store and the order to raise it in.
Ecommerce Customer Retention: Strategies That Start Before the Second Order
Ecommerce customer retention is decided before the second order is asked for. Nine retention strategies for Shopify brands, in the order we use them.
Ecommerce KPIs: The Few That Decide Whether a Store Can Grow
The ecommerce KPIs that decide whether a Shopify store can grow: contribution margin, revenue per visitor, acquisition cost, payback and repeat rate.
Ecommerce Profitability: Why Growing Stores Make Less Money
Ecommerce profitability often falls as revenue grows. Why costs outpace sales on growing Shopify stores, and the levers that restore profit per order.
Ecommerce Unit Economics: Can Your Store Afford to Grow?
Ecommerce unit economics explained: contribution per order, acquisition cost and payback, with a worked example that shows if a store can afford to grow.
Repeat Purchase Rate: What Good Looks Like and How to Move It
How to calculate your repeat purchase rate, why industry benchmarks mislead, and what actually moves the number on a Shopify store.