HomeBlogFinance FundamentalsNet Profit Margin vs Gross Profit Margin: What To Track?

Net Profit Margin vs Gross Profit Margin: What To Track?

By Leah TranMay 30, 202513 min read
Net Profit Margin vs Gross Profit Margin: What To Track?
  • Total Revenue is what you earned (after returns or discounts)
  • Cost of Goods Sold (COGS) includes all direct production costs — like materials, packaging, and labor
  • Total Revenue is your sales after returns or discounts.
  • Total Costs include COGS and all other business expenses like rent, wages, taxes, and depreciation.

TrueProfit Shopify Profit Tracker

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Leah Tran

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.

avatarLeah Tran

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.

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