Gross Profit 1
Gross Profit 1 is a company's profit after deducting the Cost of Goods Sold, which represents the costs associated with purchasing its products. This figure does not include fulfillment, marketing, or overhead costs such as rent, utilities, salaries, or returned items.
Related terms
Cost of Goods Sold (COGS)
The cost of goods sold signifies the total expense of purchasing the products sold, meaning the cost appears first when you sell the product.
Gross Profit 2
Gross Profit 2 measures profitability after accounting for the costs and fulfillment costs associated with purchasing its products. Fulfillment costs include storage, order processing, packaging, and shipping expenses. Like Gross Profit 1, this figure does not consider the impacts of marketing or overhead costs such as rent, utilities, and salaries. Returned items are also not deducted in the calculation of Gross Profit 2.
Net Gross Profit 1
Net Gross Profit 1 is an e-commerce KPI. It is the result after subtracting returns and the cost of goods sold from Gross Sales.
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