Data Source: Shopify
Metrics: 11
Metrics: 11
Metrics in This Group
How These Metrics Relate
Transaction costs impact contribution margin at the CM2 level:- Total Transaction Cost = Gateway Cost + Other Transaction Cost
- New Customer Total Transaction Cost = NC Gateway Cost + NC Other Transaction Cost
- Returning Customer Transaction Cost = RC Gateway Cost + RC Other Transaction Cost
- CM2 = CM1 - Fulfillment Costs - Transaction Costs
- Gateway Cost % typically ranges from 2-3% of revenue for most processors
Choosing the Right Metric
- Payment optimization: Use Gateway Cost % to benchmark processor fees
- Per-order economics: Use Per Order metrics for unit economics
- Total processing: Use Total Transaction Cost for full payment burden
- Customer profitability: Compare New vs Returning transaction costs