eCommerce Financial Model M1 M2 M3 M4 M5 M6

Net Revenue $ 24,000 $ 48,125 $ 72,125 $ 96,125 $ 120,250 $ 144,250

COGS
Product / Manufacturing $ 5,760 $ 11,550 $ 17,310 $ 23,070 $ 28,860 $ 34,620
Packaging 576 1,155 1,731 2,307 2,886 3,462
Fulfillment 1,536 3,080 4,616 6,152 7,696 9,232
Shipping 2,112 4,235 6,347 8,459 10,582 12,694
Customer Support 4,500 4,500 4,500 4,500 4,500 4,500
Credit Card Fees 660 1,323 1,983 2,643 3,307 3,967
Total COGS $ 15,144 $ 25,843 $ 36,487 $ 47,131 $ 57,831 $ 68,475

Gross Profit $ 8,856 $ 22,282 $ 35,638 $ 48,994 $ 62,419 $ 75,775

GP % 37% 46% 49% 51% 52% 53%

Advertising $ 10,000 $ 20,000 $ 30,000 $ 40,000 $ 50,000 $ 60,000

Post-Advertising Profit $ (1,144) $ 2,282 $ 5,638 $ 8,994 $ 12,419 $ 15,775

% of Revenue -5% 5% 8% 9% 10% 11%

ASSUMPTIONS

Advertising $ 10,000 $ 20,000 $ 30,000 $ 40,000 $ 50,000 $ 60,000

Orders 192 385 577 769 962 1154

Unit Economics

Average Order Value (AOV) $ 125.0 $ 125.0 $ 125.0 $ 125.0 $ 125.0 $ 125.0

Cost of Goods Sold

Product / Manufacturing $ 30.0 $ 30.0 $ 30.0 $ 30.0 $ 30.0 $ 30.0
Packaging $ 3.0 $ 3.0 $ 3.0 $ 3.0 $ 3.0 $ 3.0
Fulfillment $ 8.0 $ 8.0 $ 8.0 $ 8.0 $ 8.0 $ 8.0
Shipping $ 11.0 $ 11.0 $ 11.0 $ 11.0 $ 11.0 $ 11.0
Total $ 52.0 $ 52.0 $ 52.0 $ 52.0 $ 52.0 $ 52.0

Gross Profit $ 73.0 $ 73.0 $ 73.0 $ 73.0 $ 73.0 $ 73.0

GP % 58% 58% 58% 58% 58% 58%

Blended CAC $ 52 $ 52 $ 52 $ 52 $ 52 $ 52

Post-Marketing Profit $ 21.0 $ 21.0 $ 21.0 $ 21.0 $ 21.0 $ 21.0

Credit Card Fees 2.75% 2.75% 2.75% 2.75% 2.75% 2.75%

% of orders with questions 10% 10% 10% 10% 10% 10%

questions 19 39 58 77 96 115
questions / support rep 250 250 250 250 250 250
support reps 1 1 1 1 1 1
Pay / month (+ benefits) $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500
 M7 M8 M9 M10 M11 M12 M13 M14

$ 168,250 $ 192,250 $ 216,375 $ 240,375 $ 264,375 $ 288,500 $ 312,500 $ 336,500

$ 40,380 $ 46,140 $ 51,930 $ 57,690 $ 63,450 $ 69,240 $ 75,000 $ 80,760

4,038 4,614 5,193 5,769 6,345 6,924 7,500 8,076
10,768 12,304 13,848 15,384 16,920 18,464 20,000 21,536
14,806 16,918 19,041 21,153 23,265 25,388 27,500 29,612
4,500 4,500 4,500 4,500 4,500 4,500 4,500 9,000
4,627 5,287 5,950 6,610 7,270 7,934 8,594 9,254
$ 79,119 $ 89,763 $ 100,462 $ 111,106 $ 121,750 $ 132,450 $ 143,094 $ 158,238

$ 89,131 $ 102,487 $ 115,913 $ 129,269 $ 142,625 $ 156,050 $ 169,406 $ 178,262

53% 53% 54% 54% 54% 54% 54% 53%

$ 70,000 $ 80,000 $ 90,000 $ 100,000 $ 110,000 $ 120,000 $ 130,000 $ 140,000

$ 19,131 $ 22,487 $ 25,913 $ 29,269 $ 32,625 $ 36,050 $ 39,406 $ 38,262

11% 12% 12% 12% 12% 12% 13% 11%

$ 70,000 $ 80,000 $ 90,000 $ 100,000 $ 110,000 $ 120,000 $ 130,000 $ 140,000

1346 1538 1731 1923 2115 2308 2500 2692

$ 125.0 $ 125.0 $ 125.0 $ 125.0 $ 125.0 $ 125.0 $ 125.0 $ 125.0

$ 30.0 $ 30.0 $ 30.0 $ 30.0 $ 30.0 $ 30.0 $ 30.0 $ 30.0

$ 3.0 $ 3.0 $ 3.0 $ 3.0 $ 3.0 $ 3.0 $ 3.0 $ 3.0
$ 8.0 $ 8.0 $ 8.0 $ 8.0 $ 8.0 $ 8.0 $ 8.0 $ 8.0
$ 11.0 $ 11.0 $ 11.0 $ 11.0 $ 11.0 $ 11.0 $ 11.0 $ 11.0
$ 52.0 $ 52.0 $ 52.0 $ 52.0 $ 52.0 $ 52.0 $ 52.0 $ 52.0

$ 73.0 $ 73.0 $ 73.0 $ 73.0 $ 73.0 $ 73.0 $ 73.0 $ 73.0

58% 58% 58% 58% 58% 58% 58% 58%

$ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52

$ 21.0 $ 21.0 $ 21.0 $ 21.0 $ 21.0 $ 21.0 $ 21.0 $ 21.0

2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75%

10% 10% 10% 10% 10% 10% 10% 10%

135 154 173 192 212 231 250 269
250 250 250 250 250 250 250 250
 1 1 1 1 1 1 1 2
$ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500
 M15 M16 M17 M18 M19 M20 M21 M22

$ 360,625 $ 384,625 $ 408,625 $ 432,750 $ 456,750 $ 480,750 $ 504,750 $ 528,875

$ 86,550 $ 92,310 $ 98,070 $ 103,860 $ 109,620 $ 115,380 $ 121,140 $ 126,930

8,655 9,231 9,807 10,386 10,962 11,538 12,114 12,693
23,080 24,616 26,152 27,696 29,232 30,768 32,304 33,848
31,735 33,847 35,959 38,082 40,194 42,306 44,418 46,541
9,000 9,000 9,000 9,000 9,000 9,000 9,000 9,000
9,917 10,577 11,237 11,901 12,561 13,221 13,881 14,544
$ 168,937 $ 179,581 $ 190,225 $ 200,925 $ 211,569 $ 222,213 $ 232,857 $ 243,556

$ 191,688 $ 205,044 $ 218,400 $ 231,825 $ 245,181 $ 258,537 $ 271,893 $ 285,319

53% 53% 53% 54% 54% 54% 54% 54%

$ 150,000 $ 160,000 $ 170,000 $ 180,000 $ 190,000 $ 200,000 $ 210,000 $ 220,000

$ 41,688 $ 45,044 $ 48,400 $ 51,825 $ 55,181 $ 58,537 $ 61,893 $ 65,319

12% 12% 12% 12% 12% 12% 12% 12%

$ 150,000 $ 160,000 $ 170,000 $ 180,000 $ 190,000 $ 200,000 $ 210,000 $ 220,000

2885 3077 3269 3462 3654 3846 4038 4231

$ 125.0 $ 125.0 $ 125.0 $ 125.0 $ 125.0 $ 125.0 $ 125.0 $ 125.0

$ 30.0 $ 30.0 $ 30.0 $ 30.0 $ 30.0 $ 30.0 $ 30.0 $ 30.0

$ 3.0 $ 3.0 $ 3.0 $ 3.0 $ 3.0 $ 3.0 $ 3.0 $ 3.0
$ 8.0 $ 8.0 $ 8.0 $ 8.0 $ 8.0 $ 8.0 $ 8.0 $ 8.0
$ 11.0 $ 11.0 $ 11.0 $ 11.0 $ 11.0 $ 11.0 $ 11.0 $ 11.0
$ 52.0 $ 52.0 $ 52.0 $ 52.0 $ 52.0 $ 52.0 $ 52.0 $ 52.0

$ 73.0 $ 73.0 $ 73.0 $ 73.0 $ 73.0 $ 73.0 $ 73.0 $ 73.0

58% 58% 58% 58% 58% 58% 58% 58%

$ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52

$ 21.0 $ 21.0 $ 21.0 $ 21.0 $ 21.0 $ 21.0 $ 21.0 $ 21.0

2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75% 2.75%

10% 10% 10% 10% 10% 10% 10% 10%

289 308 327 346 365 385 404 423
250 250 250 250 250 250 250 250
 2 2 2 2 2 2 2 2
$ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500 $ 4,500
 M23 M24

$ 552,875 $ 576,875

$ 132,690 $ 138,450
13,269 13,845
35,384 36,920
48,653 50,765
9,000 9,000
15,204 15,864
$ 254,200 $ 264,844

$ 298,675 $ 312,031
54% 54%

$ 230,000 $ 240,000

$ 68,675 $ 72,031
12% 12%

$ 230,000 $ 240,000

4423 4615

$ 125.0 $ 125.0

$ 30.0 $ 30.0
$ 3.0 $ 3.0
$ 8.0 $ 8.0
$ 11.0 $ 11.0
$ 52.0 $ 52.0

$ 73.0 $ 73.0
58% 58%

$ 52 $ 52

$ 21.0 $ 21.0

2.75% 2.75%

10% 10%
442 462
250 250
 2 2
$ 4,500 $ 4,500