Contribution Margin

Control where
your Profit comes from.

Full visibility into micro P&Ls on a daily, weekly, or monthly frequency.
Trusted by CFOs at $50M + e-commerce brands to make confident decisions.

See the Micro P&L of Every SKU,Order, and Channel.

Granularity is different at different levels.

Use Cases

AMAZON VS DTC VS OTHERS

See which channels generate profit and which ones rely on it.

Decide which channels to scale without letting one quietly subsidize another.
Channel-level CM views
Fulfillment cost separated
Refunds applied correctly
Marketplace fees parsing
See How It Works
MARKETING SPENDS

Understand when marketing spend helps the business and when it doesn't.

ROAS ≠ Profit. Adjust spend daily, knowing whether it strengthens or weakens profitability.
CM after ad spend
Variance detection built-in
Campaign-level contribution margin
Order-level audit trail
See How It Works
NEW VS RETURNING CUSTOMERS

Know how acquisition and retention economics really differ.

Evaluate acquisition health without repeat customers masking CAC.
New vs repeat CM spilt
ERP-native reconciliation for COGS
Zero-dollar exclusions
Order-level audit trail
See How It Works
UNIT ECONOMICS

Defend margin decisions with explainable micro costs, not percentages.

Don’t live with broad cost assumptions.
Cost per order
Location-based Contribution Margin
3PL fees and shipping costallocation
COGS break-down
See How It Works

90% Accuracy is not enough as your business scales.

Support your decision speed with pre-built reporting for daily, weekly, and monthly meetings.

CMO / GROWTH
The Daily Pulse
High-velocity signal detection to optimize ad spend in real-time. Needs speed over absolute precision.
Signal Detection
OPS / INVENTORY
The Weekly Pivot
Trade-off clarity for inventory and fulfillment. Coordination between marketing and supply chain.
Trade-off Clarity
CFO / BOARD
The Monthly Close
Validated, board-ready numbers that reconcile with the bank and the P&L. 100% audit-traceable.
Validated Actuals
Get 90 Day CM Plan.

Any data that you need to calculate your customized Contribution Margin.

We can bring any data from 200+ data sources
Explore Sources
Trusted by 100+ brands :
Saras Brands
Saras Brands
Saras Brands
Saras Brands
Saras Brands
Saras Brands
Saras Brands
Saras Brands
Javvy Coffee
Eskiin
Wellbeam
ridge
BPN
faherty
true-classic
hexclad

Trusted by the world’s fastest growing ️ECommerce brands

Our teams to access trusted insights with this data foundation.

We are growing quickly, and my focus is to ensure the business has the clarity and structure it needs to scale effectively. Saras Pulse helped strengthen our foundation, improved consistency and visibility of our product and margin data. This work supports the level of analytical rigor we need as we move into our next stage of growth.

Lauren Estante
VP Finance
It starts shining a light into like the the black holes of your business.

Every single day I'm going in there, looking at my contribution margin. I'm looking at my sales breakdown, my sales by product type.

Sean Frank
CEO
Everything is at my fingertips. And, everyone knows the revenue yesterday.

Our dashboards pull in from everywhere, from Shopify, Amazon, our ERP, Costco, every single channel. We go to Saras Pulse and get our daily contribution margin reporting. We get all of our marketing metrics by channel, by category, even down to the SKU. Everything is pulled in automatically. I get an e-mail report in the morning. I go check things during the day. My entire team lives in this thing.

jason Panzer
President

Read Saras Success Stories

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Frequently Asked Questions

What is Contribution Margin in eCommerce and why does it matter beyond gross margin?

Gross margin tells you if a product looks profitable. Contribution margin tells you if the business decision actually is profitable.

In eCommerce, contribution margin accounts for all variable costs tied to a sale, including shipping, returns, marketplace fees, payment processing, discounts, and marketing spend.

This makes CM the metric teams use to answer questions like:

  • Are we making money on this SKU after ads and returns?
  • Which channels scale profitably and which just scale revenue?
  • Why does profitability change after month-end close?

If gross margin is a static accounting view, contribution margin is the operating truth teams use to run the business daily.

Why doesn’t my contribution margin match between finance, marketing, and operations?

Because each team is using different assumptions, timing, and data sources.

What actually causes the mismatch:

  • Finance sees CM after refunds, accruals, and late COGS
  • Marketing sees CM before refunds or fulfillment adjustments
  • Ops sees shipping and returns weeks later
  • Marketplaces restate fees after the fact

This leads to three different “correct” numbers and zero confidence.

A true CM system reconciles order-level data across ERP, 3PL, ad platforms, and marketplaces, so every team works off the same definition, same timing, same number.

How often can you track contribution margins: daily, weekly, or monthly?

All three, but for different jobs.

Best-practice cadence used by scaled brands:

  • Daily CM → Action

Adjust ad spend, pause SKUs, spot margin collapse early

  • Weekly CM → Alignment

Leadership reviews tradeoffs across growth, ops, and finance

  • Monthly CM → Accounting & reporting

Book-level accuracy and retrospectives

If CM only shows up after month-end close, decisions are already late.

High-growth teams treat CM as an operating metric, not a reporting artifact.

How granular should the contribution margin really go?

As granular as decisions require. In practice, teams use CM at:

  • SKU level (which products actually make money)
  • Channel level (Amazon vs Shopify vs retail)
  • Campaign / ad-set level (what spend drives profit, not just ROAS)
  • Customer cohort level (new vs repeat, subscription vs one-time)
  • Geography & fulfillment lane level (shipping cost distortion)

Brands that only see “overall CM” still miss profit leaks hiding inside micro P&Ls.

What changes after implementing a real contribution margin system?

Teams stop debating numbers and start acting faster.

What customers typically unlock:

  • Confident budget shifts without double-checking spreadsheets
  • Fewer surprises after month-end close
  • Faster cross-functional decisions (marketing, ops, finance aligned)
  • Clear visibility into which growth is profitable vs cosmetic
  • Ability to scale without margins silently eroding

The biggest shift isn’t more data.

It’s trusting the number enough to act on it.

What data connectors are needed to support contribution margin?

 A reliable contribution margin stack pulls data from five core systems:

  1. Commerce platforms (Shopify, Amazon) for order-level revenue,
  2. Ad platforms (Meta, Google, Amazon Ads) for true demand costs, fulfillment and
  3. Carrier systems (3PLs, shipping rate cards) for delivery and returns costs,
  4. Finance/ERP systems (NetSuite, QuickBooks, SKU-level cost tables) for COGS and accounting alignment, and
  5. Returns/refunds tools (Shopify refunds, returns platforms, CX tools) to capture post-purchase margin erosion.

Together, these connectors ensure contribution margin reflects the actual cost of selling and fulfilling each order, not estimates—so teams can trust the number for daily decisions, not just month-end reporting.

Wanna deep dive into what’s actually profitable for your brand?

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