Metrics

Gross Margin

Gross margin is the percentage of revenue remaining after subtracting cost of goods sold (COGS). What's left to cover everything else.

D2C apparel typically runs 50–70% gross margin; supplements 60–80%; consumer electronics 20–40%; SaaS 75–90%.

Margin determines your ceiling on acquisition and retention spend. Low-margin businesses (electronics, food) need to be ruthlessly efficient on CAC.

Voice recovery is margin-friendly because cost per recovered cart (€0.18–€0.50) is far less than the gross profit on that cart in nearly every category.

Related terms

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