Your Results
Total Variable Cost Per Order
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Sum of all per-order costs including COGS, fulfillment, shipping, packaging, and payment processing.
Net Profit Per Order
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The profit remaining after all variable costs are subtracted from the average order value.
DTC Margin Percentage
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The percentage of revenue that remains as profit after accounting for all variable costs.
How This Calculator Works
The calculator takes your average order value and subtracts the average cost of goods sold, fulfillment center fees, shipping costs, packaging costs, and payment processing percentages. It then calculates the net profit and margin percentage per order. This provides a clear picture of your DTC channel's financial health.
When to Use This Tool
A CPG food brand is launching a new snack product directly to consumers online.
The tool helps determine if the proposed pricing and cost structure will yield a healthy DTC margin, informing pricing adjustments or cost reduction efforts before launch.
An established CPG brand wants to evaluate the profitability of its existing DTC channel.
By inputting current average values, the brand can quickly see its true per-order margin, identifying if the channel is performing as expected or if cost areas need attention.
A brand is deciding whether to focus more on DTC sales or expand its wholesale distribution.
Comparing the DTC margin calculated here with typical wholesale margins provides data to inform strategic channel investment decisions.
Common Questions
What is included in 'fulfillment cost per order'?
This typically includes the fees charged by your 3PL for receiving, storing, picking, packing, and preparing an order for shipment. It does not include the shipping label cost itself.
How does this DTC margin differ from gross margin?
Gross margin usually only subtracts the cost of goods sold from revenue. DTC margin is more comprehensive, including all variable costs directly associated with selling and delivering a product through the direct-to-consumer channel, such as fulfillment, shipping, and payment processing.
Should I include marketing costs in this calculator?
This calculator focuses on per-order variable costs. Marketing costs, while essential for customer acquisition, are generally considered fixed or semi-fixed costs and are not included in this per-order margin calculation.
Can this tool be used for subscription box businesses?
Yes, you can use this tool by inputting the average order value and associated variable costs for a single shipment of your subscription box. This will help you understand the per-box profitability.
Calculate Your True DTC Profitability Now
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