Net Gross Profit 1
Net Gross Profit 1 is an e-commerce KPI that shows the result after subtracting returns and the cost of goods sold from Gross Sales.
Net Gross Profit 1 represents a company's profit from its primary business activities after accounting for returns and the cost of goods sold (COGS). It is calculated 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 earnings before considering other expenses such as fulfillment, marketing costs, and overheads like rent, utilities, and salaries.
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.
Net Gross Profit 2
Net Gross Profit 2 is Gross Sales subtracted by returns, the cost of goods sold, and the fulfillment costs.
Net Sales
A company's Net Sales are the Gross Sales minus any returns.
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