Gross Profit vs Net Income: Key Differences and Why They Matter
- Raw materials or inventory costs
- Manufacturing or production costs
- Direct labor (e.g., wages for workers involved in making or delivering the product)
- Packaging and shipping (if directly tied to sales)
- Cost of Goods Sold (COGS): Direct production costs
- Operating Expenses: Salaries, rent, utilities, software, insurance
- Marketing and Advertising Costs
- Depreciation and Amortization
- Interest on Debt or Loans
- Taxes (Local, State, Federal)
- Other Business Expenses: Legal fees, consulting, equipment maintenance
- Less: Other Income (if applicable): e.g., interest income or one-time asset sales
Content Executive at TrueProfit & eCommerce Content Specialist
Leah Tran is a Content Specialist at TrueProfit, where she crafts SEO-driven and data-backed content to help eCommerce merchants understand their true profitability. With a strong background in content writing, research, and editorial content, she focuses on making complex financial and business concepts clear, engaging, and actionable for Shopify merchants.
Leah Tran is a Content Specialist at TrueProfit, where she crafts SEO-driven and data-backed content to help eCommerce merchants understand their true profitability. With a strong background in content writing, research, and editorial content, she focuses on making complex financial and business concepts clear, engaging, and actionable for Shopify merchants.
Table of Contents
