{
  "slug": "ecommerce",
  "label": "Ecommerce & DTC",
  "publisher": "Level",
  "publisher_url": "https://levelcfo.com",
  "dataset": "The Level Index, Ecommerce & DTC benchmarks",
  "methodology": "This dataset separates published population anchors, public-company or merchant composites, calculated bridges, and Level operator estimates. A chart is not treated as a measured percentile distribution unless its evidence basis supports that claim. No individual company is identified.",
  "sources": [
    "National Retail Federation (NRF), 2025 Retail Returns Landscape; 2024 Consumer Returns in the Retail Industry",
    "U.S. Census Bureau, Quarterly E-Commerce Report (Q1 2026)",
    "Triple Whale, 2025 channel ad benchmarks (Meta, Google, TikTok, Amazon) + Marketing Efficiency Ratio report",
    "Klaviyo, published guidance on repeat purchase rate and ecommerce benchmarks",
    "SEC EDGAR, FY2025 10-K filings: Chewy (CHWY), Etsy (ETSY), FIGS, Warby Parker (WRBY), Allbirds (BIRD), Wayfair (W), Solo Brands, Amazon (AMZN), Shopify (SHOP)",
    "ReadyRatios, SEC-derived SIC 5961 (catalog/mail-order and online retail) financial ratio cohort",
    "NYU Stern (Damodaran), industry margin data (Retail, General)",
    "Litmus, email marketing ROI survey (retail/ecommerce segment)",
    "Level Index, the founding team's analysis of 2,200+ contractors ($13.25B revenue) across operating, private-equity, and CFO roles, extended with ecommerce operator observations"
  ],
  "last_updated": "2026-Q3",
  "table_headers": {
    "lower": "Lower / riskier",
    "middle": "Reference point",
    "upper": "Higher / healthier"
  },
  "table_semantics": "Reference bands for decision support. These columns are not a common measured quartile cohort.",
  "metrics": [
    {
      "key": "cash_conversion_cycle_days",
      "label": "Cash Conversion Cycle (Days)",
      "unit": "days",
      "lower_is_better": true,
      "evidence_type": "Public-company and merchant composite",
      "definition": "Days inventory outstanding plus days sales outstanding minus days payable outstanding.",
      "sample_size": "No single cohort published",
      "reference_values": [
        {
          "label": "Bottom 10%",
          "value": 120
        },
        {
          "label": "P25",
          "value": 75
        },
        {
          "label": "Median",
          "value": 50
        },
        {
          "label": "P75",
          "value": 30
        },
        {
          "label": "Top 10%",
          "value": 15
        }
      ],
      "sample": "Industry composite, Shopify merchant data + public DTC 10-Ks",
      "source": "Public DTC 10-Ks (Solo Brands, Shopify, Chewy, Warby Parker, Amazon), SEC EDGAR"
    },
    {
      "key": "return_rate_of_sales_by_category",
      "label": "Return Rate (% of sales), by category",
      "unit": "%",
      "lower_is_better": true,
      "evidence_type": "Published population anchor",
      "definition": "Returned online sales divided by online sales, measured across the retail population in the cited NRF study.",
      "sample_size": "NRF population estimate; company-level n not published",
      "source_url": "https://nrf.com/research/2025-retail-returns-landscape",
      "categories": [
        {
          "name": "Online avg (NRF 2025)",
          "value": 19.3
        },
        {
          "name": "All-channel retail (NRF 2024)",
          "value": 16.9
        }
      ],
      "sample": "NRF / Happy Returns, 2025 Retail Returns Landscape",
      "source": "NRF / Happy Returns, 2025 Retail Returns Landscape; NRF 2024 Consumer Returns in the Retail Industry"
    },
    {
      "key": "revenue_per_employee_k",
      "label": "Revenue per Employee ($K)",
      "unit": "K",
      "lower_is_better": false,
      "evidence_type": "Merchant and public-company composite",
      "definition": "Annual revenue divided by reported or inferred full-time-equivalent employees.",
      "sample_size": "No single cohort published",
      "reference_values": [
        {
          "label": "Bottom 10%",
          "value": 150
        },
        {
          "label": "P25",
          "value": 250
        },
        {
          "label": "Median",
          "value": 400
        },
        {
          "label": "P75",
          "value": 650
        },
        {
          "label": "Top 10%",
          "value": 1000
        }
      ],
      "sample": "Shopify merchant data + public DTC filings (2024)",
      "source": "Shopify merchant data, public DTC filings"
    },
    {
      "key": "contribution_margin_after_cogs_shipping_fees_ad_spend",
      "label": "Contribution Margin After COGS, Shipping, Fees & Ad Spend",
      "unit": "%",
      "lower_is_better": false,
      "evidence_type": "Calculated composite and Level operator estimate",
      "definition": "Revenue remaining after COGS, shipping, payment fees, returns, and paid acquisition costs.",
      "sample_size": "No private-brand cohort published; calculated reference distribution",
      "reference_values": [
        {
          "label": "Bottom 10%",
          "value": -5
        },
        {
          "label": "P25",
          "value": 8
        },
        {
          "label": "Median",
          "value": 18
        },
        {
          "label": "P75",
          "value": 28
        },
        {
          "label": "Top 10%",
          "value": 38
        }
      ],
      "sample": "Calculated reference distribution from published variable-cost inputs + Level operator analysis",
      "source": "Contribution-margin bridge from published inputs (Triple Whale MER, NRF returns) + the Level founding team's operator analysis"
    },
    {
      "key": "cac_as_of_first_order_revenue",
      "label": "CAC as % of First-Order Revenue",
      "unit": "%",
      "lower_is_better": true,
      "evidence_type": "Aggregate benchmark; source sample not published here",
      "definition": "Customer acquisition cost divided by first-order revenue, expressed as a percentage.",
      "sample_size": "Not published by cited sources",
      "reference_values": [
        {
          "label": "Bottom 10%",
          "value": 55
        },
        {
          "label": "P25",
          "value": 38
        },
        {
          "label": "Median",
          "value": 28
        },
        {
          "label": "P75",
          "value": 18
        },
        {
          "label": "Top 10%",
          "value": 10
        }
      ],
      "sample": "Triple Whale + Klaviyo 2024-2025 aggregate data",
      "source": "Triple Whale + Klaviyo aggregate CAC data; email ROI figure from Litmus"
    },
    {
      "key": "return_on_ad_spend_roas_by_channel",
      "label": "Return on Ad Spend (ROAS) by Channel",
      "unit": "×",
      "lower_is_better": false,
      "evidence_type": "Published channel medians",
      "definition": "Attributed revenue divided by advertising spend for the named channel.",
      "sample_size": "Not published by cited source",
      "source_url": "https://www.triplewhale.com/2025-ecommerce-benchmarks",
      "categories": [
        {
          "name": "Meta (median)",
          "value": 1.86
        },
        {
          "name": "TikTok (median)",
          "value": 2.21
        },
        {
          "name": "Amazon (median)",
          "value": 3.14
        },
        {
          "name": "Google (median)",
          "value": 3.68
        }
      ],
      "sample": "Triple Whale, 2025 channel-level ad benchmarks",
      "source": "Triple Whale, 2025 Facebook/TikTok/Amazon/Google Ads Benchmarks"
    },
    {
      "key": "ltv_cac_ratio",
      "label": "LTV:CAC Ratio",
      "unit": "×",
      "lower_is_better": false,
      "evidence_type": "Directional operating reference",
      "definition": "Contribution-margin lifetime value divided by customer acquisition cost.",
      "sample_size": "No consistent public cohort published",
      "reference_values": [
        {
          "label": "Bottom 10%",
          "value": 1
        },
        {
          "label": "P25",
          "value": 1.8
        },
        {
          "label": "Median",
          "value": 2.8
        },
        {
          "label": "P75",
          "value": 4.2
        },
        {
          "label": "Top 10%",
          "value": 6.5
        }
      ],
      "sample": "Triple Whale + industry surveys 2024-2025",
      "source": "Level Index operator synthesis informed by public ecommerce guidance"
    },
    {
      "key": "repeat_purchase_rate_within_12_months",
      "label": "Repeat Purchase Rate (within 12 months)",
      "unit": "%",
      "lower_is_better": false,
      "evidence_type": "Published range plus Level operator estimate",
      "definition": "Customers who place at least one additional order within 12 months divided by first-time customers in the same cohort.",
      "sample_size": "Klaviyo range; Level distribution cohort not published",
      "source_url": "https://www.klaviyo.com/glossary/what-is-a-good-repeat-purchase-rate",
      "reference_values": [
        {
          "label": "Bottom 10%",
          "value": 10
        },
        {
          "label": "P25",
          "value": 18
        },
        {
          "label": "Median",
          "value": 27
        },
        {
          "label": "P75",
          "value": 38
        },
        {
          "label": "Top 10%",
          "value": 52
        }
      ],
      "sample": "Klaviyo's published 20-30% good-repeat-rate range anchors the median; the full distribution and category breakdown are the Level Index founding team's operator analysis",
      "source": "Klaviyo published guidance (median anchor); category distribution is the Level Index founding team's operator analysis"
    },
    {
      "key": "revenue_from_single_largest_channel",
      "label": "Revenue from Single Largest Channel (%)",
      "unit": "%",
      "lower_is_better": true,
      "evidence_type": "Level operator estimate",
      "definition": "Revenue from the largest sales channel divided by total revenue.",
      "sample_size": "Level ecommerce cohort not published",
      "reference_values": [
        {
          "label": "Top 10% (diversified)",
          "value": 30
        },
        {
          "label": "P75",
          "value": 40
        },
        {
          "label": "Median",
          "value": 55
        },
        {
          "label": "P25",
          "value": 72
        },
        {
          "label": "Bottom 10%",
          "value": 90
        }
      ],
      "sample": "Level Index founding team's operator analysis, informed by Jungle Scout seller survey trends",
      "source": "Level Index founding team's operator analysis"
    }
  ],
  "benchmark_table": [
    {
      "metric": "Contribution Margin (after all variable costs)",
      "bottom_quartile": "< 10%",
      "median": "15-20%",
      "top_quartile": "> 28%",
      "evidence_type": "Calculated composite and Level operator estimate",
      "sample_size": "No private-brand cohort published",
      "note": "THE number for DTC; bridge from published variable-cost inputs + the Level founding team's operator analysis"
    },
    {
      "metric": "CAC Payback Period",
      "bottom_quartile": "> 12 months",
      "median": "6-9 months",
      "top_quartile": "< 3 months",
      "evidence_type": "Directional operating reference",
      "sample_size": "No consistent public cohort published",
      "note": "First-order payback at contribution margin"
    },
    {
      "metric": "Inventory Turns (annual)",
      "bottom_quartile": "< 3×",
      "median": "4-6×",
      "top_quartile": "> 8×",
      "evidence_type": "Public-company and merchant composite",
      "sample_size": "No single cohort published",
      "note": "Fashion/apparel runs lower; consumables higher"
    },
    {
      "metric": "Return Rate (online)",
      "bottom_quartile": "> 25% (apparel)",
      "median": "19.3% online population anchor",
      "top_quartile": "< 10% (hardgoods)",
      "evidence_type": "Published population anchor plus Level operator estimate",
      "sample_size": "NRF population estimate; company-level n not published",
      "source_url": "https://nrf.com/research/2025-retail-returns-landscape",
      "note": "NRF 2025 publishes 19.3% of online sales returned overall. The apparel and hardgoods bands are Level operator estimates, not NRF quartiles"
    },
    {
      "metric": "Shipping Cost % of Revenue",
      "bottom_quartile": "> 14%",
      "median": "8-12%",
      "top_quartile": "< 6%",
      "evidence_type": "Directional operating reference",
      "sample_size": "No consistent public cohort published",
      "note": "Free-shipping threshold optimization critical"
    },
    {
      "metric": "Ad Spend % of Revenue",
      "bottom_quartile": "> 30%",
      "median": "18-25%",
      "top_quartile": "< 15%",
      "evidence_type": "Aggregate benchmark; source sample not published here",
      "sample_size": "Not published by cited sources",
      "note": "Include all paid channels: Meta, Google, TikTok"
    },
    {
      "metric": "Repeat Purchase Rate (12-mo)",
      "bottom_quartile": "< 18%",
      "median": "20-30% published range",
      "top_quartile": "> 38%",
      "evidence_type": "Published range plus Level operator estimate",
      "sample_size": "Klaviyo range; Level distribution cohort not published",
      "source_url": "https://www.klaviyo.com/glossary/what-is-a-good-repeat-purchase-rate",
      "note": "Klaviyo publishes the 20-30% range. The outer bands and category split are Level operator estimates, not measured quartiles"
    },
    {
      "metric": "Gross Margin",
      "bottom_quartile": "< 45%",
      "median": "55-65%",
      "top_quartile": "> 70%",
      "evidence_type": "Public-company and merchant composite",
      "sample_size": "No single cohort published",
      "note": "Before shipping, fees, and ad spend"
    },
    {
      "metric": "Net Profit Margin",
      "bottom_quartile": "< 0% (many lose money)",
      "median": "3-6%",
      "top_quartile": "> 10%",
      "evidence_type": "Public-company filing cohort plus industry dataset",
      "sample_size": "NYU Stern Retail General cohort n=23; named filings are not a private-brand cohort",
      "note": "NYU Stern/Damodaran puts Retail (General) net margin at 5.6% (n=23). FY2025 10-Ks: Etsy 5.7%, FIGS 5.4%, Chewy 1.8%, Warby Parker 0.2%, Wayfair -2.5%, Allbirds -50.7% (revenue nearly halved), a real spread supporting a mid-single-digit median with a long negative tail"
    },
    {
      "metric": "Days Inventory Outstanding (DIO)",
      "bottom_quartile": "> 150 days (FIGS, Solo Brands)",
      "median": "~44 days",
      "top_quartile": "< 40 days (Chewy, Warby Parker, Amazon)",
      "evidence_type": "SEC-derived public-company cohort",
      "sample_size": "ReadyRatios SIC 5961 cohort; individual filing n varies",
      "note": "ReadyRatios SEC SIC 5961 cohort: 44 days (2025); individual FY2025 10-Ks give the real spread"
    },
    {
      "metric": "Marketing Efficiency Ratio (MER)",
      "bottom_quartile": "< 2x",
      "median": "~2.4x (41% of revenue)",
      "top_quartile": "> 4x",
      "evidence_type": "Aggregate benchmark; source sample not published here",
      "sample_size": "Not published by cited source",
      "note": "Triple Whale: median MER across its customer base was 41% of revenue in 2025 (range by category: Automotive 27% to Pets 52%)"
    },
    {
      "metric": "Chargeback Rate",
      "bottom_quartile": "> 0.9%",
      "median": "< 0.65%",
      "top_quartile": "< 0.4%",
      "evidence_type": "Directional operating reference",
      "sample_size": "No consistent public cohort published",
      "note": "Directional; Visa's exact dispute-monitoring threshold is not published at a fetchable public URL"
    },
    {
      "metric": "Average Order Value (AOV)",
      "bottom_quartile": "< $35",
      "median": "$55-$85",
      "top_quartile": "> $120",
      "evidence_type": "Directional operating reference",
      "sample_size": "No consistent public cohort published",
      "note": "Higher AOV absorbs fixed shipping/fulfillment"
    },
    {
      "metric": "LTV:CAC Ratio",
      "bottom_quartile": "< 2:1",
      "median": "2.5-3.5:1",
      "top_quartile": "> 5:1",
      "evidence_type": "Directional operating reference",
      "sample_size": "No consistent public cohort published",
      "note": "Use contribution-margin LTV, not gross-margin"
    }
  ]
}