[Important] eCommerce Unit Economics You Need to Understand

Jandre de Beer - How to Build a Better Business

What You're Going to Learn in This Video:In this video, you'll learn the four essential metrics that every aspiring eCommerce entrepreneur must understand to build a profitable and scalable business. We'll break down unit economics in a simple and practical way. You'll discover how to evaluate a product's profitability, how much you can afford to spend to acquire customers, and what benchmarks to aim for across different industries. If you're planning to launch or grow an eCommerce brand, these insights are critical to avoiding costly mistakes and ensuring long-term success.🤔 Who Am I?Hi, I'm Jandre, founder of V8 Media! We've worked with over 500 businesses since 2018 and generated nearly 1.4 billion in sales. Through our experience investing in and scaling multiple businesses, I've discovered key insights about brand positioning and marketing efficiency that I'm excited to share with you.⏱ Timestamps:0:00 - Intro: Why Unit Economics Matter1:41 - What Are Unit Economics?2:29 - Metric 1: Gross Profit Margin (GP)3:20 - What's Included in Cost of Goods?4:25 - How to Calculate Your GP5:22 - Difference Between Markup vs GP7:16 - What Is a Good GP? (With Industry Benchmarks)9:03 - Recommended GP by Industry11:06 - Why You Need High GP to Cover Expenses11:06 - Metric 2: Customer Acquisition Cost (CAC)12:27 - Understanding and Researching CAC13:29 - Metric 3: Contribution Margin14:23 - Accounting for Variable Expenses16:09 - Calculating Contribution Margin17:08 - What’s a Healthy Contribution Margin?18:35 - Metric 4: Lifetime Value (LTV)20:13 - How to Estimate LTV and Repeat Purchases21:10 - LTV vs CAC Ratio for Business Viability23:06 - Final Summary & Action Plan🔎 Hashtags#eCommerceTips #UnitEconomics #GrossProfit #CAC #LTV #MarketingMetrics #eCommerceStrategy #OnlineBusiness #StartupTips #BusinessGrowth #CustomerAcquisition #DigitalMarketing #ProfitMargins #EntrepreneurTips #eCommerceEducation #BusinessMetrics #ContributionMargin #BrandGrowth #eCommerceMarketing #ProductProfitability🔎 Related Searches:how to calculate unit economicswhat is a good gross profit marginunderstanding customer acquisition costecommerce business profitabilityhow to scale an ecommerce brandlifetime value vs cacmetrics to track in ecommercehow to price products for profitcontribution margin explainedstartup unit economics guideecommerce cost breakdowngross profit vs markup🔑 Keywords:unit economics, gross profit, customer acquisition cost, contribution margin, lifetime value, ecommerce profitability, CAC, LTV, product pricing, cost of goods sold, ecommerce margins, digital marketing metrics, startup metrics, ecommerce KPIs, GP margin, online store profitability, business benchmarks, ecommerce cost structure, repeat customer rate