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

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

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.