Question 1

How should I adjust my prices in response to tariffs and inflation?

Accepted Answer

Instead of making reactive, across-the-board price increases, you should systematically test your pricing. Make small, incremental adjustments and closely monitor your conversion rates to find the optimal price point that maximizes your margin without significantly hurting sales volume.

Question 2

What is the difference between contribution margin and gross margin?

Accepted Answer

Gross margin is the difference between revenue and the cost of goods sold. Contribution margin, on the other hand, subtracts all variable costs, including shipping, fulfillment, and marketing expenses, giving you a truer picture of your product's profitability.