Make Industry Benchmarks and Best Practices Work for You

• Incremental breakeven can be calculated simply by dividing your catalog cost by your return/cancellation percentage, then dividing again by your gross margin ratio. Example:

Factors
Catalog Cost — $0.65
Return/Cancel — 5%
Margin — 55%

______
Calculation
$0.65/0.95%
1) (100% - 5%) — $0.68
2) $0.684/0.55 — 1.24
3) Breakeven — $1.24