Remove COGS, shipping and fees from revenue to see margin.
Online gross margin strips goods, delivery and payment fees from revenue, giving the profit left before marketing and overhead. Marketplace commissions and shipping silently consume the headline product margin, so true store margin is what ad budgets can actually afford.
Ecommerce Gross Margin
Gross margin = (revenue - direct costs) / revenue x 100
Gross margin = (revenue - direct costs) / revenue x 100 Online gross margin strips goods, delivery and payment fees from revenue, giving the profit left before marketing and overhead.
Marketplace commissions and shipping silently consume the headline product margin, so true store margin is what ad budgets can actually afford.
This calculator takes 4 inputs: Revenue, Cost of goods sold, Shipping and packaging, Transaction and platform fees. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.