🧠 Tier 4 - Advanced / NicheID: unitEconomicsModellingD2c
Unit Economics Modelling for D2C
Full per-order profitability stack: AOV − COGS − Shipping − Gateway Fees − RTO Loss − CAC = Net Contribution
In Simple Words (Zero Jargon):
The complete financial formula that subtracts product cost, delivery fee, payment fee, return loss, and ad cost from order price to see if you made real profit.
Calculation Example & Benchmark Matrix
| Order Revenue & Cost Stack | Sample ₹1,000 Order Economics |
|---|---|
| Average Order Value (AOV) | ₹1,000 |
| Cost of Goods Sold (COGS 30%) | −₹300 |
| Forward + Reverse Shipping & Packaging | −₹120 |
| Payment Gateway Fee (2%) | −₹20 |
| RTO Provision (20% COD failure rate) | −₹60 |
| Net Realized Revenue Before Ads | ₹500 (50% Margin) |
| Customer Acquisition Cost (CAC) | −₹350 |
| Net Contribution Margin per Order | +₹150 (15% Net Profit) |
What You Get: The true P&L reality check proving whether your brand generates real cash per order beyond surface ROAS dashboard numbers.