E-commerce / DTC
Does Your CAC Exceed First-Order Margin? Diagnose Unit Economics
What is your blended customer acquisition cost right now, and how does it compare to your gross margin on a first order? If CAC > first-order margin, how many orders does it take before a customer becomes profitable — and how many actually get there?
Why This Matters
E-commerce margins are thinner than most founders realize once you account for returns, shipping, ad spend, and platform fees. If your customer acquisition cost exceeds first-order margin, you need repeat purchases to break even — and many DTC brands never get there. This diagnostic separates vanity metrics from real unit economics.