Build ecommerce profit from revenue down through product cost, shipping, fees, ads and returns.
The result is the signed sum of its components: positive items are added and deductions subtracted. Expressing it as a share of the positive components shows how much of the gross figure survives to the bottom line. Working the store income statement up from its components makes clear which line is moving it, which a single headline number hides.
Ecommerce Profit
Ecommerce Net Profit = Revenue − Product cost − Shipping and packaging − Platform and payment fees − Advertising − Cost of returns
Ecommerce Net Profit = Revenue − Product cost − Shipping and packaging − Platform and payment fees − Advertising − Cost of returns The result is the signed sum of its components: positive items are added and deductions subtracted. Expressing it as a share of the positive components shows how much of the gross figure survives to the bottom line.
Working the store income statement up from its components makes clear which line is moving it, which a single headline number hides.
This calculator takes 6 inputs: Revenue, Product cost, Shipping and packaging, Platform and payment fees, Advertising, Cost of returns. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.