Are you running Google Ads or Facebook Ads for your eCommerce Store? If yes, then you might be only focusing on the conversion, rather than Profit you are generating.
Many businesses make this mistake and because of this, they are not making a huge profit at the end of the month.
You might not know what ROAS you have to maintain to gain the profit that you were expecting.
I have created a Google Sheet Master and you use the PROFIT CALCULATION template for your business and you can download for FREE.
Just add your name and email below to get access to the Google Sheet template:
How To Calculate Your Ecommerce Profit Margin
You won’t be able to edit the sheet you can MAKE A COPY of Google Sheet and you can use it for your Ecommerce Business.
How to Calculate Profit Margin
Profit Margin is calculated by dividing your net income by your total sales revenue,
Profit Margin = Gross Profit (Total Sales – Total Expenses) / Total Sales
What is a good eCommerce profit margin?
Every industry has a different profit margin. But if you are talking about eCommerce then 25% net profit is considered average, 40% margin is considered high, and 10% margin is low.
