Gross Profit
Revenue minus COGS minus Amazon fees — what's left before subtracting overhead, advertising, and operating expenses.
Gross Profit on a per-unit basis is Sale Price − COGS − Amazon Fees. On a business basis it's Total Revenue − Total COGS − Total Amazon Fees. The formula varies slightly by source, but the point is to isolate the margin that comes from the product itself, before allocating shared expenses like advertising spend, software subscriptions, payroll, and tax.
Gross Profit is what most sellers MEAN when they say "margin" in casual conversation, but it overstates true profitability because it ignores PPC and operating costs. A SKU with 35% gross margin might have 12% net margin after PPC, software, and labor costs are allocated. SellerVault's analytics dashboard reports both gross profit and net profit so you can see the gap.
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How to Calculate True Amazon FBA Profitability Per Unit
Most sellers miscalculate their profit margins by missing hidden fees. Learn how to calculate real per-unit profitability including every Amazon fee, COGS, and overhead cost.
Understanding Amazon FBA Fees: The Complete Breakdown
Every FBA fee explained in detail. Learn how referral fees, fulfillment fees, storage fees, and hidden charges affect your true profitability per unit.