Glossary

Net Gross Profit 2

Net Gross Profit 2 is Gross Sales subtracted by returns, the cost of goods sold and the fulfilment costs.

Net Gross Profit 2 represents the profit a company earns from its primary operations, after accounting for returns, the cost of goods sold (COGS), and fulfillment costs. Essentially, it is the calculation of profit by subtracting returns, COGS, and fulfillment costs from Gross Sales. This measure provides a detailed view of the company's operational profitability considering not only the direct costs of the sold products but also the expenses related to order fulfillment such as storage, packaging, and shipping. It's an essential metric for understanding a company's real earnings from its operations before factoring in other expenses such as marketing and overhead costs like rent, utilities, and salaries.

Start optimizing your business

Book a demo