Contribution Margin
Contribution margin is the amount left from an order after variable costs, which then contributes to covering fixed costs.
Related terms
- The Marketplace TaxThe Marketplace Tax is the gap between a delivery marketplace's advertised commission and the true total cost of an order.
- Margin ReclamationMargin Reclamation is the deliberate recovery of contribution margin lost to delivery marketplaces, back onto your own direct channels.
- Variable CostsVariable costs are costs created by each individual order, such as food cost, packaging, payment fees or marketplace commissions.