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Contribution Margin for eCommerce: What It Is and Why It Matters

Contribution Margin for eCommerce: What It Is and Why It Matters

by Jack Paxton | eCommerce | 0 comments

A 55% gross margin can still be losing money. Contribution margin accounts for fees gross margin misses. Here’s how to calculate it.

How to Calculate and Improve Your Cost Per Acquisition for eCommerce

How to Calculate and Improve Your Cost Per Acquisition for eCommerce

by Jack Paxton | eCommerce | 1 comment

TL;DR Your CPA is only meaningful relative to your margin and LTV — a $35 CPA can be great or terrible depending on your numbers. The formula Max CPA = AOV × Gross Margin % sets your ceiling, but LTV-based targeting can give you 3× more room to acquire customers than...
What Is a Good CPC for Ecommerce Ads? 2026 Benchmarks and How to Lower Yours

What Is a Good CPC for Ecommerce Ads? 2026 Benchmarks and How to Lower Yours

by Jack Paxton | eCommerce, Tutorials | 0 comments

TL;DR A good eCommerce CPC is $0.50–$2.00 on Google Shopping and $0.50–$1.50 on Meta for most product categories — but the number that matters is your CPC relative to your conversion rate and margin. This guide breaks down 2026 benchmarks by platform, category, and ad...
Shopify vs Shopify Plus: When to Upgrade (And When to Wait)

Shopify vs Shopify Plus: When to Upgrade (And When to Wait)

by Jack Paxton | Customer Acquisition, eCommerce, Shopify | 0 comments

TL;DR Shopify Plus makes sense at $1M+ in annual revenue when you’re hitting the walls of standard Shopify — specifically around checkout customization, automation workflows, wholesale/B2B needs, or multi-store management. At $2,300/month minimum, the upgrade...
Ecommerce Marketing Budget Breakdown: How to Allocate Every Dollar

Ecommerce Marketing Budget Breakdown: How to Allocate Every Dollar

by Jack Paxton | eCommerce | 0 comments

TL;DR Most profitable eCommerce brands allocate 10–20% of revenue to marketing, with the mix shifting heavily toward paid social and search (60–70% of budget) early in growth and toward retention channels (email, SMS, loyalty) as the brand matures. The right...
Ecommerce SMS Marketing: 7 Strategies That Drive Real Revenue in 2026

Ecommerce SMS Marketing: 7 Strategies That Drive Real Revenue in 2026

by Jack Paxton | Customer Acquisition, eCommerce | 0 comments

TL;DR SMS marketing drives 10–15% of total revenue for top-performing DTC brands with click rates 5–10× higher than email and open rates above 95%. The key differentiator isn’t the channel itself — it’s list quality and send strategy. Brands that treat SMS...
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