TikTok ads SOP · Unit economics

SOP: Calculate contribution margin

Goal: Know profit per order.

  1. 1Price
  2. 2Minus COGS
  3. 3Minus fulfillment and fees
  4. 4Minus commission and discounts
  5. 5Equals contribution margin
KPI: Contribution marginKPI: Break-even ROASKPI: AOV

Resources

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