Optimizing Profit Margins for E-commerce Success

E-commerce is a game of margins. With rising ad costs and shipping fees, protecting your bottom line is more important than ever.

Understanding Gross vs. Net Margin

Gross margin is your revenue minus the cost of goods sold. Net margin is what's left after all other expenses—ads, shipping, returns, and overhead.

Ways to Boost Your Margins

• Reduce Returns: Better product descriptions and photos can lower return rates.
• Optimize Shipping: Negotiate rates or use lighter packaging.
• Upsell and Cross-sell: Increase your average order value without increasing acquisition costs.

Even a 1% improvement in your margins can significantly impact your annual profit.