CM2 % measures the percentage of net revenue remaining after all variable costs—COGS, fulfillment, and transaction fees.
CM2 % = ( CM2 ÷ Net Revenue ) × 100
| Metric | Definition |
|---|
| CM2 (After Fulfillment) | Profit after COGS, fulfillment, and transaction costs |
| Net Revenue | Gross revenue minus discounts and refunds |
| Metadata | |
|---|
| Type | Percentage |
| Data Source | Shopify, Upstack Costs |
| Aggregation | Ratio |
Example
Your Shopify store has $62,500 in CM2 from $125,000 net revenue.
| Component | Value | Calculation |
|---|
| CM2 | $62,500 | After variable costs |
| Net Revenue | $125,000 | Revenue base |
| CM2 % | 50% | $62,500 ÷ $125,000 × 100 |
How It Works
CM2 % shows what percentage of revenue remains after all variable per-order costs. This is your “contribution margin rate” before marketing—the profit available to cover customer acquisition costs and fixed expenses.
When to Use
| Scenario | Action |
|---|
| Setting CAC targets | Use CM2 % to determine maximum allowable acquisition cost |
| Comparing fulfillment options | Measure impact of different shipping carriers on margin |
| Tracking variable cost efficiency | Monitor CM2 % trends to catch cost creep |
| Evaluating pricing power | See how much margin remains for marketing after variable costs |
| Metric | Relationship |
|---|
| CM2 (After Fulfillment) | Dollar amount that CM2 % is based on |
| CM1 % | Margin before fulfillment costs |
| CM3 % | Margin after marketing costs |
