Definition
Marketplace unit economics is a set of metrics and formulas that show the profit or loss for a single sold unit of a product, taking into account all direct costs: purchase cost, marketplace commissions, delivery, returns and advertising expenses.
How marketplace unit economics works
Unit economics operates with the "unit" — one sold item. The calculation consists of consecutive blocks of costs and revenues that affect the final margin and the payback speed of investments into sales.
- Revenue per unit — the sale price to the end buyer on Kaspi.kz (including discounts and coupons).
- Variable costs — the cost price of the product, the marketplace commission, fees for logistics or fulfillment, payment provider fees and packaging.
- Contribution margin — revenue minus variable costs; shows how much remains to cover fixed costs and profit.
- Additional expenses — advertising inside the marketplace, discounts, returns and markdowns.
- Customer lifecycle metrics — repeat purchases, average order value, retention; needed when calculating LTV and assessing payback of acquisition costs.
Unit economics is condensed into two key formulas: contribution margin per unit and the payback period for acquisition costs, if any.
Why it’s important for a Kaspi.kz seller to calculate unit economics
Sellers on Kaspi.kz get traffic and part of operational work from the marketplace, but bear direct costs that determine the profitability of each transaction. Without unit economics calculations it’s hard to know which products actually generate profit and which are being cross-subsidized by turnover.
- Determine the break-even threshold: you will know the minimum price at which a sale is not loss-making.
- Manage assortment: weed out low-margin SKUs and focus on products with better margins.
- Plan ad budgets: understand acceptable CPA for paid campaigns in Kaspi PIM and promotional actions.
- Forecast turnover and cash flow: account for stock turnover times and returns to manage procurement.
An illustrative motivation for a seller in Kazakhstan: a small household product with a sale price of 5,000 tenge and a cost price of 3,200 tenge may look profitable, but with a 10% commission (500 tenge), delivery 400 tenge and advertising 300 tenge the margin disappears. Without accounting for all components the seller gets a distorted picture.
Specific metrics and formulas (with examples on Kaspi.kz)
Key formulas and metrics to calculate for each SKU or product group:
- Revenue per unit (R) — final price paid by the buyer on Kaspi.kz (after marketplace discounts you fund).
- Variable costs per unit (VC) = cost of goods sold (COGS) + marketplace commission + fulfillment/logistics fee + payment processing fee + packaging.
- Contribution margin per unit (CM) = R − VC. This is the money that goes to cover fixed costs and profit.
- Contribution margin rate = CM / R (percentage).
- Customer acquisition cost (CAC) — cost to attract a buyer to purchase (ad spend, promo participation fees, discounts).
- Payback period in units = CAC / CM (number of sold units required to recover acquisition costs).
- Lifetime value (LTV) — expected contribution from a customer over their lifetime: average order value × repeat purchase rate × contribution margin rate.
Example of a unit calculation (simple):
Sale price (R) = 5,000 KZT
COGS = 3,200 KZT
Marketplace commission 10% = 500 KZT
Delivery/fulfillment = 400 KZT
Advertising per sale = 300 KZT
VC = 3,200 + 500 + 400 + 300 = 4,400 KZT
CM = 5,000 − 4,400 = 600 KZT
CM rate = 600 / 5,000 = 12%
If CAC for the product is 1,200 KZT, payback in units = 1,200 / 600 = 2 units (you need two sales to recover acquisition cost).
Calculation examples: scenarios with numeric examples
Scenario A — commodity with thin margin (example above): marginal but risky. Small changes (higher returns, extra discounts) can make it loss-making.
Scenario B — optimized SKU:
R = 8,000 KZT
COGS = 3,500 KZT
Commission 12% = 960 KZT
Fulfillment = 350 KZT
Payment fee = 120 KZT
Advertising per sale = 400 KZT
VC = 3,500 + 960 + 350 + 120 + 400 = 5,330 KZT
CM = 8,000 − 5,330 = 2,670 KZT
CM rate ≈ 33%
If CAC = 2,000 KZT, payback in units = 2,000 / 2,670 ≈ 0.75 units (less than one sale, so CAC is covered within the first purchase).
When modelling, always run scenarios with variations: higher return rate, promotional discounts, bulk shipping, different commission tiers on Kaspi.kz, seasonal demand shifts. This helps set safe price floors and campaign limits.
Practical tips to improve unit economics
- Increase average price or bundle products to raise average order value without proportionally increasing variable costs.
- Reduce COGS: negotiate with suppliers, buy in larger lots, optimize packaging.
- Optimize logistics: use Kaspi fulfillment where it reduces costs or negotiate better shipping rates.
- Improve conversion: better photos, accurate descriptions, positive reviews and SEO inside Kaspi to reduce CPA.
- Lower return rate: improve product descriptions and QC, clear size charts, reliable packaging.
- Use targeted promotions: measure incremental sales from each promo to ensure ROI, rather than blanket discounts.
- Monitor Buy Box and availability — stockouts reduce lifetime value and hurt retention.
- Segment SKUs: remove or limit investment in perpetual loss-making listings, focus marketing on high-CM products.
How to embed calculations in business processes
Make unit economics part of regular reporting and decision-making:
- Create a per-SKU dashboard (Excel, Google Sheets or BI) with fields: R, COGS, commission, logistics, payment fee, ads, returns, CM and CM rate.
- Set rules: minimum acceptable CM rate and maximum CAC per product. Block or flag SKUs that fall below thresholds.
- Include unit-economics checks before launching paid campaigns in Kaspi PIM or promo actions — simulate payback and ROAS.
- Review results monthly and after major promos; update assumptions (return rates, ad effectiveness) with real data.
- Train team members (category managers, procurement, marketers) to use the same definitions so metrics are comparable.
Conclusion
Unit economics gives a clear, operational view of whether each sale brings real profit. For sellers on Kaspi.kz, calculating contribution margin per unit and understanding payback for acquisition costs is essential to manage assortment, advertising budgets and cash flow. Regular monitoring and scenario planning will help avoid hidden losses and scale sustainably.
Часто задаваемые вопросы
- How to calculate contribution margin for one unit on Kaspi.kz?
- Calculate revenue taking into account discounts and coupons minus all variable costs: cost of goods, marketplace commission, logistics/fulfillment, payment provider fee and packaging. The result is the contribution margin per unit — it shows how much remains to cover fixed expenses and profit.
- Which Kaspi.kz commissions and fees should definitely be included in variable costs?
- Include the percentage commission on the sale, any fixed fees for listing or order processing, fulfillment and logistics fees, and the payment provider commission. If the marketplace refunds part of the commission during promotions or provides concessions, account for those in specific calculation scenarios.
- How to correctly account for returns and markdowns in unit economics?
- Estimate the expected return rate and the average cost per return/restoration, then multiply by cost price and deduct as an additional variable cost per unit. For markdowns, consider the average price reduction and the share of goods subject to markdown, and include that in expected losses.
- How to calculate the payback period of advertising expenses (payback period) for a product on a marketplace?
- Divide the customer acquisition cost (CAC) by the contribution margin per unit; the result in units shows how many sales are needed for payback. If you consider customer lifetime value (LTV), compare CAC to LTV and, if needed, calculate the payback in months based on repeat purchases.
- Which metrics should be tracked monthly to manage unit economics on Kaspi.kz?
- Regularly monitor contribution margin per unit, return rate, average order value, CAC and repeat purchases (retention/LTV). Also track inventory turnover and advertising efficiency (ROAS and payback period).
