Average Sale Number of Average Cost of Expected

Amazon Prime Profit Margin

(per month in Repeated Sale Goods Sold (per Retention time
Customer ( %)
Rs) (per month) month in Rs) (in months)

1 2000 2 1500 60 0.25

2 5000 1 4000 60 0.2
3 3000 2 2200 60 0.27
4 3500 3 3000 60 0.14
5 4500 1 3800 60 0.16
Customer Lifetime Value
(CLV)

60000
60000
96000
90000
42000
 Average
Average Sale Sale
(per month in Rs) (per month in Rs)
6000
5000
5000 4500

4000 3500
3000
3000
2000
2000

1000

0
1 2 3 4 5
Average Cost of Goods Sold (per month in Rs)
4500
4000 4000
3800
3500
3000 3000
2500
2200
2000
1500 1500
1000
500
0
1 2 3 4 5
 Number of Repeated Sale (per month)
3.5
3
3

2.5
2 2
2

1.5
1 1
1

0.5

0
1 2 3 4 5
 Profi t Mar gin ( %)
0.3 0.26666666666666
7
0.25
0.25

0.2
0.2
0.15555555555555
0.14285714285714 6
0.15 3

0.1

0.05

0
1 2 3 4 5
 Customer Lifetime Value (CLV)
120000

100000 96000
90000

80000

60000 60000
60000
42000
40000

20000

0
1 2 3 4 5