Glossary

Net Gross Profit 1

Net Gross Profit 1 is An e-commerce KPI and the result after subtracting returns and the cost of goods sold from Gross Sales.

Net Gross Profit 1 represents the profit a company earns from its primary business activities after accounting for returns and the cost of goods sold (COGS). Essentially, it calculates the profit by deducting returns and COGS from Gross Sales. This measure provides a more accurate view of the company's operational profitability, as it factors in returns that reduce total profit. It's a critical metric for understanding a business's actual earnings before taking into consideration other expenses such as fulfillment, marketing costs, and overheads like rent, utilities, and salaries.

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