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CM1 per Order measures the average gross margin (revenue minus COGS) per order—the product-level profitability before fulfillment and marketing.

Formula

CM1 per Order = CM1 ÷ Orders

Formula Components


Example

Your Shopify store has $90,000 CM1 from 1,000 orders.

How It Works

CM1 per Order shows gross margin contribution per transaction. This is AOV adjusted for product costs—more actionable than revenue-based AOV for profitability analysis.

When to Use


See all Contribution Margin metrics →