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User-defined marketing costs allocated to orders, separate from platform ad spend. Configured in Cost Settings.

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Formula

Marketing Cost = Marketing order fees + Marketing Recurring expenses (prorated) + Marketing Variable costs (% of ad spend)

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Formula Components

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Example

Your store allocated $12,500 in marketing costs across orders in Q1:

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How It Works

Marketing Cost adds up every cost in the Marketing category from Cost settings: influencer fees, affiliate commissions, sponsorships, or other marketing spend not captured by ad platform integrations. Order fees are stored on each order. Recurring expenses and variable costs are added when the report runs. Marketing Cost and ad spend are deducted from CM2 to calculate CM3. Agency fees come off later, at CM4. NC Marketing Cost and RC Marketing Cost split recurring and variable marketing costs by net revenue, so together they add up to Marketing Cost. See how the split works.

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When to Use

See all Contribution Margin metrics →