Download Our Contribution Margin Calculator Spreadsheet
62% of SKUs aren't profitable. Not marginal performers. Actively losing money on every sale.
Most ecommerce operators are celebrating "best-sellers" while contribution margin evaporates. They're staring at gross margin thinking they understand profitability—while variable costs silently destroy their business.
This spreadsheet exposes the truth.
🎯 What You'll Get:
A comprehensive contribution margin calculator designed specifically for Australian ecommerce operators. Calculate true product profitability at the SKU level—accounting for every variable cost that gross margin ignores.
✓ Calculate true product profitability by SKU
✓ Account for all variable costs (shipping, marketing, processing, returns)
✓ Identify which "best-sellers" are actually profit vampires
✓ Allocate marketing spend accurately by product
✓ Compare contribution margin across channels (DTC, Amazon, wholesale)
✓ Model pricing changes and cost scenarios
✓ Build data-driven product portfolio decisions
📊 What's Inside:
• Product Cost Architecture – COGS, packaging, handling, and landed costs
• Variable Cost Rates – Payment processing, marketplace commissions, shipping tiers
• Marketing Allocation Framework – Weighted attribution by product revenue
• Return Cost Calculator – Account for the true cost of returns by category
• Contribution Margin Formula – Calculate CM$ and CM% per unit
• SKU-Level Profitability Analysis – Rank every product by true margin
• Channel Comparison Tool – Compare CM across DTC, Amazon, and wholesale
• Scenario Planning – Model price changes, cost reductions, and marketing shifts
• Benchmark Ranges – Realistic targets by category for Australian ecommerce
🇦🇺 Built for Australian Ecommerce:
• AUD currency formatting
• Australian marketplace fees (Amazon AU, eBay AU)
• Local shipping cost structures
• Category-specific benchmarks (Beauty 40-55%, Apparel 35-50%, Electronics 20-35%)
• Payment processing rates for Australian gateways
💡 Why This Matters:
Gross margin is a vanity metric. It excludes shipping, fulfillment, marketing, payment processing, and returns—the costs that actually determine profitability.
For a typical Australian ecommerce business at $2M-$5M revenue, the gap between 45% gross margin and 10% net margin represents six figures in hidden losses.
Contribution margin reveals:
→ Which products actually generate profit (not just revenue)
→ Where your marketing spend is burning cash
→ Which "best-sellers" are destroying your business
→ How much each product can afford for customer acquisition
→ Which channels deliver real profitability
→ Whether price increases or cost cuts will actually work
The 80-90% ecommerce failure rate? It's not from lack of sales. It's from selling unprofitable products while gross margin creates the illusion of success.
⚡️ Stop Flying Blind:
You can't fix what you can't measure. This calculator strips away vanity metrics and exposes SKU-level truth.
Use the Profit Anatomy Protocol to:
• Build your contribution margin dashboard in Week 1
• Identify profit vampires in Week 2
• Reprice for reality in Week 3
• Reallocate marketing spend in Week 4
Then install real-time margin monitoring to prevent future profit erosion.
⚡️ Free Download – No email required.
From the team at Uncommon Insights, helping Australian ecommerce operators master unit economics and build sustainable, profitable businesses.
Free spreadsheet calculator to reveal true product profitability at the SKU level. Account for all variable costs that gross margin ignores. Identify profit vampires and build data-driven pricing decisions for Australian ecommerce.