Business costs, advertising and stock planning

An order can contribute money while the business still needs to cover bills or finance stock. Use these guides to connect order calculations with the wider costs and timing of running a shop.

Start with a calculation

Understand the costs behind the result

Contribution margin vs net profit for online sellers

See what contribution per order includes, which business costs remain, and how to use seller profit estimates without overstating net profit.

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How to calculate break-even sales for a small business

Separate fixed and variable costs, calculate break-even units, and test how price, fees and product mix change the orders you need.

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How to calculate break-even ROAS from product costs

Find a break-even ROAS using revenue and non-ad costs, allow for overhead, and understand why revenue return alone does not prove profit.

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How to calculate stock value and inventory holding costs

Separate the money tied up in stock from its carrying costs, compare buying quantities and plan for slower sales without inventing demand.

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How to calculate product return costs and a return allowance

Compare a returned order with a kept sale, include refunds and recoveries once, and turn that contribution difference into a return allowance.

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How to allocate business overhead per product or order

Spread monthly overhead using a clear sales or time assumption, avoid double counting, and see how lower volume changes the cost per order.

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How much can you spend to acquire a product order?

Calculate an affordable advertising cost per order from contribution, leave room for overhead and profit, and assess the evidence before scaling.

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Cash flow vs profit: why a product can tie up cash

Understand the timing of stock purchases, payouts and bills, keep cash movements separate from order contribution, and test a slower-sales scenario.

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How to review small-business costs each month

Compare like-for-like monthly expenses, identify recurring changes and update product pricing assumptions without confusing forecasts with actual sales.

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How to price and plan a busy selling season

Compare order contribution with making, packing and dispatch capacity, test a realistic product mix, and avoid discount targets you cannot fulfil.

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