Profit margin or just margin is an accounting term, showing what percentage of the retail price your profit is. It is the ratio between the profit and the retail price.
The profit margin formula is:
Margin = (retail price - cost of goods) / retail price
Ex. ($100 - $65) / $100 = 35% margin, the profit is 35% of the price at which the product is sold
— Sustainable growth in ecommerce is hard to achieve. It means growing in revenue while turning a profit. As acquisition costs increase, profitability goes down. More traffic and even more sales don’t guarantee more profits and being able to keep the l
— Cost of goods sold or cost of sales is the accounting term for the price companies pay for manufacturing their products - materials, labors, factory costs, etc. If you resell products, the cost is what you pay to your suppliers for them plus storage, shipp