Net Margin

Net margin is profit divided by revenue. In ecommerce planning, it helps sellers compare products with different prices, costs, and fee structures.

Why percentage matters

A product with higher dollar profit is not always better if the margin percentage is fragile. A small increase in shipping, returns, or ad cost can erase profit on low-margin products.

Useful next step

Use the marketplace fee comparison guide to compare net margin across channels before committing inventory.

Use it in a calculator

After reviewing this term, open the marketplace calculator hub or country calculator hub and test the number with a realistic product scenario.