This is one of the better explanations of eCommerce finance I've read because it emphasizes the metrics that actually drive decisions, not just dashboard vanity numbers. The distinction between COGS and the full cost of delivery is especially important, many brands overestimate their gross margin and end up overspending on acquisition. I'd also add that reviewing contribution profit at the SKU level often reveals which products should acquire customers and which should primarily serve as upsells or cross-sells.
This is one of the better explanations of eCommerce finance I've read because it emphasizes the metrics that actually drive decisions, not just dashboard vanity numbers. The distinction between COGS and the full cost of delivery is especially important, many brands overestimate their gross margin and end up overspending on acquisition. I'd also add that reviewing contribution profit at the SKU level often reveals which products should acquire customers and which should primarily serve as upsells or cross-sells.
I wish more eCommerce leaders understood the importance of these north star finance metrics rather than marketing KPIs.