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.
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.
