Product Unit Economics Table
Find which products really make money.
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Build a unit economics table for my products. Products and data: [PRODUCT_DATA] (including price, cost of goods, shipping cost, packaging, platform fees, payment fees, average discount, return rate, ad cost per order). For each product calculate, and show formulas for: net revenue per unit after discount; cost of goods; fulfillment cost; platform and payment fees; expected return cost (return rate times loss per return); contribution margin per unit; contribution margin percent; ad cost per order; profit per order after ads; and break-even ROAS. Present as a table sorted by profit per order. Mark products with negative or thin margins. Then give: three products to scale, three to fix (with the lever that matters: price, cost, shipping, returns), and any product to drop. Show a sensitivity table for a 10 percent price increase and a 10 percent cost increase for the top five. State assumptions, flag missing inputs as [ADD DATA], and explain the difference between contribution margin and net profit. This is analysis only, not accounting or tax advice.
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Product | Price | Discount | Net revenue | COGS | Shipping | Fees | Return cost | Contribution | Margin Linen shirt | 60 | 4 | 56 | 22 | 5 | 3.4 | 2.8 (7% x 40) | 22.8 | 40.7% Canvas bag | 30 | 1 | 29 | 14 | 4 | 1.8 | 0.6 | 8.6 | 29.7% Ad cost per order 12 -> profit per order: shirt 10.8; bag -3.4 (negative). Break-even ROAS for the bag: price 29 / contribution before ads 12.0 = 2.4. Scale: linen shirt. Fix: canvas bag (raise price or cut shipping cost). Consider dropping: none yet. Sensitivity: price +10% on the bag adds 2.9 contribution; cost +10% on the shirt removes 2.2. Assumptions marked; missing inputs flagged [ADD DATA]. Contribution margin is not net profit.
Illustrative only, made-up data. Your results will differ and must be reviewed.