“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.

Play from 7:47
7:47

Audio streams from the publisher’s own feed. Verbatim does not host or copy it.

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 margin Share 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 play 35x revenue growth, 35x EBITDA, 37x contribution margin Share 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.”
SN
Scott Needham
The CPG Guys ·
Contrarian take $65 vs $45 Share this moment
“$50,000 in one day selling like our clear protein on TikTok shop”
♫
Said on The Iced Coffee Hour
Hard number $50,000 Share this moment

Moments like this, every Monday

The strongest new moments on your topics, in the speakers' own words. Free for three topics.

No card. No password. One-click unsubscribe.

Track a competitor?

Pro watches up to 25 names or phrases and emails you the morning after they are said.

See Pro, $29 a month

Verbatim quotes a short extract and links to the episode; the episode belongs to its publisher. Remove a show.