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.

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.