E-commerce Business Budget Calculator
Plan your complete e-commerce financial budget with target percentage allocations for COGS, marketing, shipping, and fixed operating expenses.
E-commerce Budget Allocation Formula
Budget = Revenue × Target %; Net Profit = Revenue - (COGS + Marketing + OPEX + Fulfillment); Break-Even = Fixed OPEX / Contribution Margin- Cost of Goods Sold (COGS): Product manufacturing, freight import duties, and landed wholesale cost (typically 25% to 35%).
- Marketing & Advertising: Paid user acquisition, influencer marketing, and retention campaigns (typically 20% to 30%).
- Shipping & Fulfillment: Postage, packaging materials, and warehouse pick-and-pack (typically 8% to 15%).
- Fixed OPEX: Salaries, software apps, office rent, and insurance (typically 10% to 20%).
Step-by-Step Worked Example
Calculation Steps:
How to Use This Calculator
Assumptions & Limitations
- Budget percentages reflect healthy direct-to-consumer e-commerce benchmarks.
- Variable costs scale linearly with monthly sales revenue.
Frequently Asked Questions
What is the standard rule of thumb for e-commerce budget allocation?
A widely accepted benchmark is the 30/30/20/20 model: 30% for Cost of Goods Sold, 30% for Marketing & Advertising, 20% for Fulfillment & Operations, and 20% for Net Pre-Tax Profit.
What happens if my marketing spend exceeds 30% of revenue?
High ad spend directly compresses your net profit margin unless your customer lifetime value (CLV) generates profitable repeat orders without additional ad spend.
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