How to calculate ecommerce profit

Ecommerce profit is what remains after discounts, product cost and — when you choose — other variable costs tied to fulfilling and acquiring orders. Revenue alone does not show whether a store is economically healthy.

Measure one consistent period

Use a month, quarter or campaign window and keep every input inside that range. Mixing partial periods with annual costs produces margins that look precise but mislead decisions.

Net revenue

Net revenue = gross sales − discounts

Gross sales is pre-discount value. Discounts include coupon codes, automatic rules and line-item reductions applied to those sales.

Gross profit and gross margin

Gross profit = net revenue − COGS
Gross margin = gross profit ÷ net revenue

Contribution margin

Contribution = gross profit − optional variable costs

Optional variable costs include payment fees, shipping subsidies, marketing and other per-order costs. StoreOpps operational reports focus on gross profit and gross margin; the calculator shows contribution when you enter these costs.

• Use net revenue — not gross sales — as the margin denominator
• Keep COGS aligned to units sold in the same period
• Treat fixed rent and salaries separately from product cost
• Investigate product-level economics after store-level totals

Next steps

Estimate margins for a period with the calculator, then connect operational data to see which products and discounts drive the result.