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Pure EC companies are likely to have more problems because they do not have a logistics infrastructure already in place and are forced to use external logistics services rather than in-house departments for these functions.
Contribution Margin
The portion of sales income available to cover fixed expenses and contribute to net profit, after covering all variable expenses.
Financial Advantage
The benefit gained in financial terms, which might include profitability, revenue growth, or value creation, compared to a baseline or competitors.
Fixed Manufacturing Expenses
These are the expenses that remain constant regardless of the amount of goods produced, including rent for factory buildings or lease payments for manufacturing equipment.
Fixed Selling
Expenses that remain constant regardless of the level of sales or production, such as salaries of sales managers and rental charges of retail spaces.
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