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🛒 E-commerce

Unit Economics for E-commerce

GMV (total sales) is a vanity metric if the contribution margin per order is negative. Shipping, fulfillment, and returns eat the margin unit by unit, not in the aggregate.

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Metrics and LATAM benchmarks — E-commerce

Monthly Revenue — Gross Billing

StatusRange
HealthyNo absolute benchmark: depends on margin, not volume
AlertRevenue growing but NCM declining
CriticalRevenue with negative NCM per order

Active Customers — Recurring buyer base

StatusRange
HealthyBase growing MoM and buying with frequency > 3×/year
AlertStable base but purchase frequency < 2×/year
CriticalBase shrinking or buying only once

Marketing Investment — Monthly acquisition spend

StatusRange
HealthyMarketing / Revenue < 20% and LTV:CAC > 3×
AlertMarketing / Revenue 20–35%
CriticalMarketing / Revenue > 35% without LTV to justify it

AOV — Average Order Value

StatusRange
Healthy> $70 USD (depends on category)
Alert$35–$70 USD
Critical< $35 USD (logistics consumes the margin)

Purchase Frequency — Orders per customer per year

StatusRange
Healthy> 4 purchases/year per active customer
Alert2–4 purchases/year
Critical< 2 purchases/year (single-purchase model)

Gross Margin — % remaining after direct costs

StatusRange
HealthySaaS: > 70% · Fintech: > 50% · Ecommerce: > 35%
AlertSaaS: 50–70% · Fintech: 35–50% · Ecommerce: 20–35%
CriticalSaaS: < 50% · Fintech: < 35% · Ecommerce: < 20%

Fulfillment Rate — Logistics cost as % of AOV

StatusRange
Healthy< 12% of AOV (picking + shipping + returns)
Alert12–20% of AOV
Critical> 20% of AOV (logistics destroys the margin)

Return Rate — % of orders returned

StatusRange
Healthy< 8% for accessories/home · < 15% for fashion
Alert8–18% depending on category
Critical> 25% in any category

CAC — Customer Acquisition Cost

StatusRange
HealthyLTV:CAC > 3× and payback < 12 months
AlertLTV:CAC 1.5–3× or payback 12–18 months
CriticalLTV:CAC < 1.5× or payback > 18 months

Annual Churn — Customers who do not return to buy

StatusRange
Healthy< 35% annual (retention > 65%)
Alert35–55% annual
Critical> 55% annual (single-purchase business model)

Other verticals: 💻 SaaS · 💳 Fintech · 🏢 Proptech · 🎓 Edtech