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How are gross margins calculated for eCommerce businesses?

Asked 3 years ago

How do people who own eCommerce businesses calculate their gross margins? What factors need to be included that are specific to owning an eCommerce business?

Gross margin Profit calculation Ecommerce business

Dangelo Hickman

Tuesday, October 19, 2021

To calculate the gross profit margin manually of an e-commerce store, subtract the cost of goods sold from revenue then divide the result by revenue. There are online calculators like BeProfit’s calculator that you can integrate with your Shopify store. Some factors to consider while calculating is the cost of shipping goods, and packaging.

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