The second most important metric for every company
Gokul Rajaram
2.3K12

Boss, Brilliant as always!! One suggestion: For e-commerce, it’s “contribution margin” instead of gross profit because what would be really useful to know is whether each unit sold is generating a profit after subtracting all direct variable cost of selling that unit (including marketing). There are many e-commerce companies with positive gross profit but negative contribution margin and when they try to scale, it ends not so well.