Gross margin
Gross margin is the % of revenue left after COGS: (revenue − COGS) ÷ revenue. It sets your break-even ROAS, pricing flexibility, and ability to scale.
Benchmarks
Average ecommerce conversion rate is often ~2–3% (varies widely by industry and traffic mix).
Source: IRP Commerce — Ecommerce Market Data (Jan 2026)
Key takeaways
- Gross margin — focus on one metric or lever at a time; validate with data before scaling spend.
- Pair reading with the Ecommerce Simulator on Growthegy to practice unit economics and decisions before you spend.
- Bookmark growthegy.com/ecommerce-simulator/ for hands-on scenarios; use the blog for deeper guides.
Definition
Gross margin — The % of revenue left after COGS: (revenue − COGS) ÷ revenue.
Related tool
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Frequently asked questions
What does this Growthegy article explain?
It covers “Gross margin” for ecommerce and online business owners: practical definitions, what to measure, and how to apply the ideas — often with the Ecommerce Simulator when numbers clarify the takeaway.
Who should read this guide?
DTC founders, store operators, and marketers who want clear, data-backed growth guidance—without agency jargon.
Where can I practice ecommerce decisions?
Use the Ecommerce Simulator at growthegy.com/ecommerce-simulator/ — turn-by-turn traffic, conversion, margin, and cash flow in your browser. No account required. Browse the blog for related guides.
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