Glossary

Gross Profit 2

Gross Profit 2 is the measure of profitability after accounting for both the costs associated with purchasing its products and the costs of fulfillment. Fulfillment costs include expenses related to storage, order processing, packaging, and shipping. Like Gross Profit 1, this figure does not consider the impacts of marketing costs or overhead costs such as rent, utilities, and salaries. Returned items are also not deducted in the calculation of Gross Profit 2.

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