Revenue vs Income: What’s the Difference? (eComm-Friendly)

By Irene LeMay 28, 20258 min read
Revenue vs Income: What’s the Difference? (eComm-Friendly)
  • Revenue (aka gross revenue or sales) is the total amount you earn from selling products or services.
  • Income (aka net income or net profit) is what’s left after subtracting all your costs and expenses from that revenue.
  • Gross Revenue: All sales before any deductions.
  • Gross Income (or Gross Profit): Revenue minus the cost of goods sold (COGS).
  • Net Income: What remains after subtracting all other expenses like marketing, shipping, software subscriptions, and taxes.
  • Gross Revenue = $100,000
  • Cost of Goods Sold = $40,000
  • Gross Income = $60,000
  • Operating Expenses = $30,000
  • Net Income = $30,000
  • Operating Income: After core business costs but before taxes and interest.
  • Net Income: After all expenses.
  • Net Revenue is gross revenue minus refunds, discounts, and returns.
  • Net Income is what’s left after all expenses are deducted, including product costs, ad spend, and taxes.

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Irene Le

Content Manager at TrueProfit & eCommerce Marketing Specialist

Irene Le is the Content Manager at TrueProfit, specializing in crafting insightful, data-driven content to help eCommerce merchants scale profitably. With over 5 years of experience in content creation and growth strategy for the eCommerce industry, she is dedicated to producing high-value, actionable content that empowers merchants to make informed financial decisions.

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