Gross Profit % (of Gross) measures gross profit as a percentage of gross revenue. It shows your gross margin rate before discounts and refunds.
Gross Profit % (Gross) = Gross Profit ÷ Gross Revenue × 100
| Metric | Definition |
|---|
| Gross Profit | Revenue minus cost of goods sold |
| Gross Revenue | Total revenue before discounts and refunds |
| Metadata | |
|---|
| Type | Percentage |
| Data Source | Shopify |
| Aggregation | Ratio |
Example
Your Shopify store has $60,000 in gross profit from $100,000 in gross revenue.
| Metric | Value | Calculation |
|---|
| Gross Profit | $60,000 | Revenue − COGS |
| Gross Revenue | $100,000 | Before discounts/refunds |
| GP % (Gross) | 60% | ($60,000 ÷ $100,000) × 100 |
How It Works
This metric calculates gross margin using gross revenue as the denominator. It shows your product margin before any promotional discounts or refunds are applied, giving you insight into your baseline product profitability.
When to Use
| Scenario | Action |
|---|
| Product margin analysis | Understand base product profitability |
| Pricing strategy | Ensure adequate gross margin before promotions |
| Supplier negotiations | Track COGS impact on margins |
| Trend monitoring | Compare margins across periods |
| Metric | Relationship |
|---|
| Gross Profit | The numerator in this calculation |
| Gross Revenue | The denominator in this calculation |
| Contribution Margin % | Margin after all variable costs |
| COGS Gross Rate | COGS as percentage of gross revenue |
