Building a profitable brand
E-commerce investors focus on unit economics, customer lifetime value, and brand strength. Post-2021, profitability and capital efficiency are paramount. Your pitch should prove you can acquire customers profitably.
Blended and by-channel cost to acquire customers.
Benchmark: Target CAC:LTV of 1:3 or better.
Gross margin from a customer over their relationship.
Benchmark: Calculate using actual cohort data, not projections.
Revenue minus COGS, shipping, payment processing, and returns.
Benchmark: Healthy brands: 30-50% contribution margin.
Percentage of customers who purchase again.
Benchmark: Strong brands: 30%+ repeat within 90 days.
Percentage of orders returned.
Benchmark: Fashion: 20-30%, Other categories: <10%.
Prove profitability at the order level
Explain why customers choose you
Reduce platform risk
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