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As an ecommerce business, understanding your contribution margin is crucial for making informed decisions about your operations. At a high level, contribution margin is the amount of revenue remaining after all variable costs have been subtracted, and it is a key metric for determining the profitability of your product lines and pricing strategies. In this blog post, we will define contribution margin and explain the main components that go into its calculation. We will also discuss the importance of understanding contribution margin and provide examples of how you can optimize your operations to improve.
When merchants first start selling products online, typically it begins in a single place - whether that’s a D2C Shopify site, Amazon listings, or even perhaps emailed wholesale orders, it’s rare to start with multiple channels from Day 1.
With the Black Friday Cyber Monday (BFCM) weekend around the corner, here’s a last minute checklist for your operations team which can help make sure you’re set up for success this busy season.
Effectively managing your carriers during the Black Friday, Cyber Monday (BFCM) and Holiday busy seasons is essential to giving your customers a good post-purchase experience. With the increased shipping volume across the industry, there is always the risk of unexpected carrier capacity constraints and longer delivery times during this period.
For merchants that use Bin Level Inventory, establishing a replenishment plan is essential to making sure that the picking team can continue to get customer shipments out the door as quickly and efficiently as possible.
While incredibly useful for BFCM, this exercise is a useful tool to be used throughout the rest of the year as well. The more volume of customer shipments that are leaving the warehouse, the more return on investment you will get from small improvements that can be achieved using analyses like this one.
In the Black Friday Cyber Monday (BFCM) and Holiday busy seasons, order volumes typically increase significantly, but consumer expectations around fulfillment times remain the same. In order for your fulfillment team to pick, pack, and ship as many orders as possible, it is essential to optimize your warehouse layout.
