PROFITFALCON Profit math for e-commerce operators
The formulas behind contribution margin, SKU economics, cohort LTV, and acquisition payback — the same math ProfitFalcon computes on your exports.
How to Calculate Contribution Margin for E-commerce (Formula + Worked Example)
Gross margin tells you how the catalog is doing on average. Contribution margin tells you which SKUs are actually paying the bills — and which ones only look profitable.
Read article →SKU Rationalization: Find the SKUs Quietly Eating Your Profit
Most catalogs follow a brutal curve: the top fifth of SKUs funds everything, and a long tail quietly burns cash on storage, returns, and ad spend.
Read article →LTV Cohort Analysis From a Single CSV Export
You don't need a data warehouse for cohort LTV. One orders export with customer id, date, and net revenue is enough to see whether your acquisition actually pays back.
Read article →Blended ROAS Is Lying to You — Compute True CAC and Payback Instead
Blended ROAS mixes new customers with repeat buyers who would have purchased anyway. It can rise while your acquisition engine falls apart underneath it.
Read article →Dead Stock Math: What Unmoving Inventory Actually Costs You
Inventory that doesn't move feels like an asset on the balance sheet. Operationally it's a slow leak: capital, storage, and shrinking resale value, compounding monthly.
Read article →Discount Leakage: How Promo Codes Quietly Destroy Margin
Every discount code has one job: create orders that wouldn't exist otherwise. Most codes fail that test — they just make existing orders cheaper.
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