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.
Related terms
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.
Gross Profit 3
Gross Profit 3 encompasses the profitability measure that includes the product purchasing costs, fulfillment costs, marketing costs associated with promoting the products, and general marketing expenses. It still does not consider overhead costs such as rent, utilities, and salaries. Like Gross Profit 1 and 2, returned items are not deducted in the calculation of Gross Profit
Fulfillment
The process of receiving goods from suppliers, packaging the items, branding it, and then shipping orders to customers. Fulfillment also handles the returning part of the process from the customer back to the warehouse.
Net Gross Profit 2
Net Gross Profit 2 is Gross Sales subtracted by returns, the cost of goods sold, and the fulfillment costs.
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