What is Unit Economics in D2C?

Unit economics is the direct revenue and costs associated with a single customer order. It tells you if you are making money on the individual transactions that drive your business.

What is Contribution Margin 1 (CM1) vs. CM2?

CM1 is Revenue minus COGS and Variable Logistics. CM2 (or Contribution Margin) is CM1 minus direct marketing costs (CAC). If CM2 is positive, you are making a profit on the acquisition.

Why is unit economics more important than total revenue?

You can have high revenue but still be losing money on every order. Scaling a business with negative unit economics only leads to faster burn and eventual failure.

How do I optimize my unit economics?

Increase your AOV through bundling, reduce your COGS through volume, or improve your ad efficiency to lower your per-order marketing cost.

D2C Unit Economics Calculator | Free Unit Economics Calculator Tool

Enter Your Order Economics

Industry

Average Order Value

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Monthly Orders

Product COGS

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Manufacturing Overhead

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Packaging Cost

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Shipping Cost

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Warehousing Cost

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Payment Processing

COD Handling Fee

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COD Percentage

RTO Rate

RTO Cost per Order

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Return Rate

Return Cost per Order

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Return Restock Rate

Marketing % of Revenue

Meta Spend %

Google Spend %

Influencer Spend %

Other Marketing %

Repeat Customer Rate

Avg Orders per Customer

GST Rate

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Industry

Average Order Value

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Monthly Orders

Product COGS

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Manufacturing Overhead

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