Glossary / Gross Profit

Gross Profit

Sale price minus COGS only — before fees and shipping.

Gross profit is your sale price minus only your cost of goods. It ignores platform fees and shipping costs, so it always looks better than net profit. Gross profit is useful for understanding markup, but net profit is what you actually keep.

Example

You sell a jacket for $45 that you bought for $8. Gross profit = $37. Net profit (after eBay fees and shipping) is closer to $25.

Related terms

Net Profit

What you actually made after every cost.

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Cost of Goods Sold (COGS)

What you paid to acquire the item you sold.

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Profit Margin

Net profit as a percentage of your sale price.

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Break-even calculator →Platform fee comparison →

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