Net Revenue

What is net revenue in ecommerce?

Net revenue is gross revenue, minus any cancellations, returns, discounts and taxes.

How do you calculate net sales revenue for ecommerce?

Net revenue = (gross revenue) - (cancellations + returns + taxes + markdowns + promotional discounts)

What is the difference between markdowns and promotional discounts?

Markdowns are product price reductions, perhaps due to an inability to sell the product at its original price. Promotional discounts are temporary reductions in prices for a specific purpose, such as seasonal campaigns, and can apply to individual items or the entire transaction.

What is the difference between gross revenue and net revenue in ecommerce?

Gross revenue includes all income from a sale, before deducting any expenses. Net revenue is your earnings from a sale after you subtract your expenses.

See also

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