Ecommerce & Marketplaces
Net profit per order
Every order-level cost is subtracted from the sale price.
The Formula
Net = Price - Cost - Platform - Payment - Shipping - Ads - Other
Every order-level cost is subtracted from the sale price.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| P | Sale price | currency | What the customer pays. |
| C | Product cost | currency | Cost of goods per order. |
| M | Platform fee | currency | Marketplace commission. |
| F | Payment fee | currency | Processor percentage plus fixed fee. |
| S | Shipping | currency | Cost to deliver the order. |
| A | Advertising | currency | Ad cost allocated to the order. |
| O | Other cost | currency | Any other per-order charge. |
What Each Symbol Means
Pcurrency
Sale price
What the customer pays.
Ccurrency
Product cost
Cost of goods per order.
Mcurrency
Platform fee
Marketplace commission.
Fcurrency
Payment fee
Processor percentage plus fixed fee.
Scurrency
Shipping
Cost to deliver the order.
Acurrency
Advertising
Ad cost allocated to the order.
Ocurrency
Other cost
Any other per-order charge.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate ecommerce profit page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Ecommerce Profit, filed under Business. Every number the guide produces comes from substituting into this one line.