The economics of a single sale/unit of product: how much we earned “per unit” after all expenses.
Detailed
Unit economics helps quickly identify unprofitable SKUs and make decisions regarding pricing, advertising, assortment, and warehouses.
Term
Unit Economics
We sell profit, not turnover.
Formula
Profit/unit = Actual Price − Commission − Logistics − Cost Price − Packaging − Advertising/unit − Returns Losses
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