In e-commerce, break-even analysis refers to the process of determining the point at which the total revenue generated from online sales equals the total costs associated with running the e-commerce business. This analysis helps e-commerce businesses understand when they will begin to make a profit and how many products or services need to be sold to cover their expenses, including website maintenance, marketing, inventory, and fulfilment costs. It’s a critical tool for assessing the financial viability of an e-commerce venture, setting prices, and making informed decisions about online operations.

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