Sample e-commerce margin model
How an illustrative e-commerce model works out the margin you keep per order after COGS, shipping, fees and returns, plus the inventory and working capital behind your cash.
This example is for e-commerce and DTC operators who want to see what each order earns once every per-order cost is counted.
For illustration only: any business or figures shown here are made up, and your own results will differ.
Unit margin per order
- Revenue and average order value (e.g. a $60 order)
- Cost of goods, shipping and payment fees netted out (e.g. $21, $8 and $2)
- Returns modelled as a margin line (e.g. $3 an order)
- Contribution after acquisition cost (e.g. $60 − $21 − $8 − $2 − $3 = $26, less $18 acquisition cost per order = $8)
Cash & inventory
- Working capital tied up in stock
- Reorder points and timing
- Seasonality across the calendar
- Runway if returns rise or you offer free shipping
Outputs
- Unit margin model
- Inventory and cash flow plan
- Financial model you can share with a lender
Questions founders ask
What is an e-commerce financial model?
A projection of revenue and the margin you keep per order, with inventory and working capital tied to cash timing.
Does it handle returns and fees?
Yes. They are netted into the unit margin, so the margin shown is after every per-order cost.
Can it model inventory cash?
Yes. The model tracks the cash tied up in stock and when it comes back as sales, so runway accounts for it.
Build this on your own numbers
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