{"id":24485,"date":"2024-07-11T11:37:59","date_gmt":"2024-07-11T03:37:59","guid":{"rendered":"https:\/\/newsbites.hktdc.com\/?p=24485"},"modified":"2024-07-11T14:27:22","modified_gmt":"2024-07-11T06:27:22","slug":"cm1","status":"publish","type":"post","link":"https:\/\/newsbites.hktdc.com\/tips\/financial-management\/cm1\/","title":{"rendered":"Why E-Commerce Contribution Margin Is Important?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"24485\" class=\"elementor elementor-24485\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-9883213 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"9883213\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-bd93c9e\" data-id=\"bd93c9e\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f07cab3 elementor-widget elementor-widget-text-editor\" data-id=\"f07cab3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>When you run an e-commerce store selling different product categories, the concept of Contribution Margin comes into play as to company resources allocation to enhance the overall profitability.<\/p><p>In this article, we will introduce the fundamentals of calculating the Contribution Margin and why e-commerce businesses should care about it.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-76fc25c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"76fc25c\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-01e9dc5\" data-id=\"01e9dc5\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-60dc5a8 elementor-widget elementor-widget-heading\" data-id=\"60dc5a8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What Is Contribution Margin?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-69e0155 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"69e0155\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-4d85bff\" data-id=\"4d85bff\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b491f48 elementor-widget elementor-widget-text-editor\" data-id=\"b491f48\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Contribution Margin gauges a product&#8217;s production profitability. It reflects the <strong>amount of revenue that remains after variable costs<\/strong>, such as raw materials and transportation expenses, are subtracted. It can be expressed as a gross figure or per-unit basis.<\/p><p>This metric illustrates <strong>individual product&#8217;s impact on the company&#8217;s profitability<\/strong>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8cbbb9e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8cbbb9e\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-692a849\" data-id=\"692a849\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d161792 elementor-widget elementor-widget-heading\" data-id=\"d161792\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">The Contribution Margin Formula &amp; Its Components<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c3eff33 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c3eff33\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-55e0a6e\" data-id=\"55e0a6e\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f61b2b9 elementor-widget elementor-widget-text-editor\" data-id=\"f61b2b9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The primary Contribution Margins formula is as follows:<strong>\u00a0<\/strong><\/p><table width=\"624\"><tbody><tr><td width=\"624\"><p><strong>Contribution Margin =<\/strong> <strong>Sales Revenue &#8211; Variable Costs<\/strong><\/p><\/td><\/tr><\/tbody><\/table><p>Alternatively,\u00a0Contribution Margins can also be determined using fixed costs instead of variable costs with this equation:<\/p><table width=\"624\"><tbody><tr><td width=\"624\"><p><strong>Contribution Margin = Fixed Costs + Net Income<\/strong><\/p><\/td><\/tr><\/tbody><\/table>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b8e510c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b8e510c\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a5dd2ff\" data-id=\"a5dd2ff\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c03a552 elementor-widget elementor-widget-image\" data-id=\"c03a552\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t<figure class=\"wp-caption\">\n\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2024\/01\/iStock-1392711193-1024x683.jpg\" class=\"attachment-large size-large wp-image-22233\" alt=\"\" srcset=\"https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2024\/01\/iStock-1392711193-1024x683.jpg 1024w, https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2024\/01\/iStock-1392711193-600x400.jpg 600w, https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2024\/01\/iStock-1392711193-768x512.jpg 768w, https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2024\/01\/iStock-1392711193-1536x1024.jpg 1536w, https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2024\/01\/iStock-1392711193-2048x1365.jpg 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t\t\t\t\t\t\t\t<figcaption class=\"widget-image-caption wp-caption-text\">Contribution Margin can also be calculated on a per-unit basis.<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-25f8622 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"25f8622\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-12db8ab\" data-id=\"12db8ab\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e9aa9a7 elementor-widget elementor-widget-text-editor\" data-id=\"e9aa9a7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>It is useful to understand each component of the above formula:<\/p><h3>Sales Revenue<\/h3><p>Sales revenue represents the income generated by the company through the sale of its goods or services.<\/p><h3>Variable Costs<\/h3><p>Variable costs encompass expenditures associated with manufacturing goods or services that fluctuate based on production volume, supplier costs, and labour expenses.<\/p><p>For example:<\/p><ul><li>Raw materials<\/li><li>Maintenance costs<\/li><li>Employee hourly wages and labour expenses linked to production volume<\/li><li>Sales commissions<\/li><li>Shipping, freight, and transportation expenses<\/li><li>Utility costs<\/li><\/ul><h3>Fixed Costs<\/h3><p>Fixed costs are expenses that remain constant regardless of changes in production volume.<\/p><p>Examples include:<\/p><ul><li>Fixed salaries regardless of production fluctuations<\/li><li>Rent payments and property taxes<\/li><li>Insurance costs<\/li><li>Interest expenses<\/li><\/ul><h3>Net Income<\/h3><p>Net income is determined by subtracting the cost of goods sold (COGS), operational expenses (e.g., rent, marketing, advertising), interest charges, and taxes from sales revenue. It measures profitability and reveals how much the company&#8217;s revenue surpasses its expenses.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c9bbabc elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c9bbabc\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-cbec028\" data-id=\"cbec028\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-0776082 elementor-widget elementor-widget-image\" data-id=\"0776082\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t<figure class=\"wp-caption\">\n\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"269\" height=\"213\" src=\"https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2024\/07\/costs.png\" class=\"attachment-large size-large wp-image-24489\" alt=\"\" \/>\t\t\t\t\t\t\t\t\t\t\t<figcaption class=\"widget-image-caption wp-caption-text\">A simple illustrative graph showing the difference between fixed and variable costs.<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-ec9f55c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ec9f55c\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-bb96549\" data-id=\"bb96549\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-53adc75 elementor-widget elementor-widget-heading\" data-id=\"53adc75\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Why Contribution Margin Is Significant in E-Commerce?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-a843ad8 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"a843ad8\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3d64c74\" data-id=\"3d64c74\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3d5303a elementor-widget elementor-widget-text-editor\" data-id=\"3d5303a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Contribution Margin is essential to your business for several key reasons:<\/p><ol><li><strong>Profitability Assessment:<\/strong> It helps you gauge your company&#8217;s profitability by revealing how much each sale contributes to covering variable and fixed costs, ultimately generating profit.<br \/><br \/><\/li><li><strong>Pricing Strategies:<\/strong> Understanding Contribution Margin allows you to make informed decisions about pricing your products or services. By considering both variable and fixed costs, you can set prices that cover expenses and help you identify areas where cost-cutting measures can be most effective.<br \/><br \/><\/li><li><strong>Break-Even Analysis:<\/strong> The break-even point\u2014the level of sales needed to cover all costs. This knowledge helps you set realistic business goals, understand your minimum revenue requirements to avoid losses and make informed decisions about sales strategies.<br \/><br \/><\/li><li><strong>Resource Allocation: <\/strong>You can invest more in offerings with higher margins and potentially discontinue or optimise those with lower margins.<br \/><br \/><\/li><li><strong>Operational Efficiency:<\/strong> By optimising variable costs and managing fixed costs, you can improve your overall financial performance.<br \/><br \/><\/li><li><strong>Product Line Evaluation: <\/strong>Identify which products are the most lucrative and allocate resources accordingly.<\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-fb514ad elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"fb514ad\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-c31205e\" data-id=\"c31205e\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f9108dd elementor-widget elementor-widget-image\" data-id=\"f9108dd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t<figure class=\"wp-caption\">\n\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2024\/07\/shutterstock_2116811153-1024x683.jpg\" class=\"attachment-large size-large wp-image-24490\" alt=\"\" srcset=\"https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2024\/07\/shutterstock_2116811153-1024x683.jpg 1024w, https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2024\/07\/shutterstock_2116811153-600x400.jpg 600w, https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2024\/07\/shutterstock_2116811153-768x512.jpg 768w, https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2024\/07\/shutterstock_2116811153-1536x1024.jpg 1536w, https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2024\/07\/shutterstock_2116811153-2048x1365.jpg 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t\t\t\t\t\t\t\t<figcaption class=\"widget-image-caption wp-caption-text\">You can easily identify the bestseller by calculating the Contribution Margin of each product!<\/figcaption>\n\t\t\t\t\t\t\t\t\t\t<\/figure>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-0e9779f elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"0e9779f\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-736a6a9\" data-id=\"736a6a9\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-de7756d elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"de7756d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-9e45349 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"9e45349\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7cbeed1\" data-id=\"7cbeed1\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c340f75 elementor-widget elementor-widget-text-editor\" data-id=\"c340f75\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Contribution Margin helps you make smart choices about how much to charge for your products, what to sell, and how to sell them. It also lets you check if your money-saving efforts and new pricing ideas work.<\/p><h3>Watch out for Part 2 of this article in late July, where we will discuss how companies are using the Contribution Margin to improve business performance!<\/h3>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-13298ba elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"13298ba\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-67a20ea\" data-id=\"67a20ea\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6a14cd6 elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"6a14cd6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-aee8097 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"aee8097\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-edcb68a\" data-id=\"edcb68a\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-bcc0ed4 elementor-widget elementor-widget-text-editor\" data-id=\"bcc0ed4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>This article is originally published by\u00a0<a href=\"https:\/\/aspireapp.com\/blog\/understanding-ecommerce-contribution-margin\" target=\"_blank\" rel=\"noopener nofollow external noreferrer\" data-wpel-link=\"external\">Aspire<\/a>:<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-aa3c429 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"aa3c429\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-53bdf7b\" data-id=\"53bdf7b\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3f1195b elementor-widget elementor-widget-image\" data-id=\"3f1195b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/aspireapp.com\/blog\/\" target=\"_blank\">\n\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/elementor\/thumbs\/Logo-Full-qihe921irfcr540yjzoyx6ykq4q9czjdakgi7p3o0o.png\" title=\"Logo &#8211; Full\" alt=\"Logo - Full\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5068973 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5068973\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7cfbb95\" data-id=\"7cfbb95\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-419ad13 elementor-widget elementor-widget-text-editor\" data-id=\"419ad13\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Aspire is the all-in-one finance platform for modern businesses, helping over 15,000 companies save time and money with international payments, expense management, payable management, and receivable management solutions \u2014 accessible via a single, user-friendly account.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6cba08e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6cba08e\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-89bb077\" data-id=\"89bb077\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1b47514 elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"1b47514\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-a2a5fe5 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"a2a5fe5\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-f66da78\" data-id=\"f66da78\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-404b4a7 elementor-widget elementor-widget-text-editor\" data-id=\"404b4a7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Build a strong e-commerce business with us:<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-cbabcf0 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"cbabcf0\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-fa33887\" data-id=\"fa33887\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d6f77ce elementor-widget elementor-widget-image\" data-id=\"d6f77ce\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/sourcing.hktdc.com\/en\/promotion\/souvenirs_top_notch_materials_for_your_projects\/?ref_source=newsbites\" target=\"_blank\">\n\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"880\" height=\"200\" src=\"https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2024\/07\/202407_newsbites.png\" class=\"attachment-large size-large wp-image-24222\" alt=\"\" srcset=\"https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2024\/07\/202407_newsbites.png 880w, https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2024\/07\/202407_newsbites-600x136.png 600w, https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2024\/07\/202407_newsbites-768x175.png 768w\" sizes=\"(max-width: 880px) 100vw, 880px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8431cb0 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8431cb0\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-90b035a\" data-id=\"90b035a\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c5df677 elementor-widget elementor-widget-image\" data-id=\"c5df677\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/sourcing.hktdc.com\/newsbites\/promote-your-business\/\" target=\"_blank\">\n\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"880\" height=\"200\" src=\"https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2024\/01\/new.png\" class=\"attachment-large size-large wp-image-21878\" alt=\"\" srcset=\"https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2024\/01\/new.png 880w, https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2024\/01\/new-600x136.png 600w, https:\/\/newsbites.hktdc.com\/wp-content\/uploads\/2024\/01\/new-768x175.png 768w\" sizes=\"(max-width: 880px) 100vw, 880px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b2ae38c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b2ae38c\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5269b6b\" data-id=\"5269b6b\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e1fe659 elementor-widget-divider--view-line elementor-widget elementor-widget-divider\" data-id=\"e1fe659\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"divider.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-divider\">\n\t\t\t<span class=\"elementor-divider-separator\">\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>When you run an e-commerce store selling different product categories, the concept of Contribution Margin comes into play as to company resources allocation to enhance &hellip; <\/p>\n","protected":false},"author":28,"featured_media":24486,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[388,4],"tags":[],"class_list":["post-24485","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-management","category-tips"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Why E-Commerce Contribution Margin Is Important? - HKTDC Newsbites<\/title>\n<meta name=\"description\" content=\"When you run an e-commerce store selling different product categories, the concept of Contribution Margin comes into play as to company resources\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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