Contribution Margin
Revenue minus variable costs, showing what each sale contributes to profit.
What is Contribution Margin?
Contribution margin is the revenue from a product minus its variable costs — COGS, freight, transaction and channel fees, deductions — showing how much each sale contributes toward fixed costs and profit. Measured by channel, it exposes the uncomfortable truth that a brand’s highest-revenue channel is often not its most profitable. It is the metric that should drive channel, pricing, and assortment decisions.
How Endless handles it
Endless rolls up channel-specific costs — including freight, fees, and deductions — so operators see true contribution margin by channel and SKU, not just top-line revenue.
Related terms
Browse the full commerce operations glossary.
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