financialE-commerce
Gross Margin in E-commerce & Retail Tech
Revenue minus cost of goods sold, expressed as a percentage of revenue.
E-commerce Gross Margin Benchmarks
Low
20%
25th percentile
Median
35%
50th percentile
High
50%
75th percentile
Elite
65%
Top 10%
Product costs vary greatly
Higher is better
What Affects Gross Margin?
Pricing power
Cost structure
Competitive pressure
Economies of scale
Product mix
Operational efficiency
How to Improve Gross Margin
1
Optimize pricing strategy
2
Reduce cost of goods sold
3
Improve operational efficiency
4
Increase value-added services
5
Monitor competitor pricing
6
Focus on higher-margin products
Gross Margin in Other Industries
Track Your Gross Margin Automatically
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