“We're left with $18, so $100 sale minus $30 of cost of goods, minus $6 for TikTok, minus $15 for the creator, minus $20 for GMV Max, minus $8 for fulfillment and shipping, minus $3 for returns equals an $18 contribution margin.”
Jordan West · The Unofficial TikTok Shop Podcast with Jordan West · You Just Made a $100 Sale on TikTok Shop. Here’s Why You Only Kept $18.
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What was described
calculates contribution margin of $18 on a $100 TikTok shop sale after all variable costs
$18 contribution margin (18% of $100)
Said nearby on the same subject
“We're going to invent a product that sells for exactly $100. And this is actually a really good TikTok shop product because it has 70% gross margins, meeting our landed product cost is $30”
JW
Jordan West
The Unofficial TikTok Shop Podcast with Jordan West ·
Business model$100 sale, $30 product cost, 70% gross marginShare this moment
“FinalLoop… have this new MCP… brands doing a million dollars or more a year on TikTok Shop… 35X more revenue growth, 35X more EBITDA, and about 37X more contribution margin.”
JW
Jordan West
The Unofficial TikTok Shop Podcast with Jordan West ·
Data play35x revenue growth, 35x EBITDA, 37x contribution marginShare this moment
“He asked me… why can I charge $65 on Amazon when all my competition charges $45? … People learn about his product on TikTok Shop… builds brand equity.”