Revenue after subtracting discounts and refunds from gross revenue—the primary metric for profitability analysis.
Net Revenue = Gross Revenue − Discounts − Refunds
| Metric | Definition |
|---|
| Gross Revenue | Product revenue before discounts and refunds |
| Discounts | Total discount amount applied to orders |
| Refunds | Total refund amount issued |
| Metadata | |
|---|
| Type | Currency |
| Data Source | Shopify |
| Aggregation | Sum |
Example
Your store generated $156,400 in net revenue this quarter:
| Component | Amount | Impact |
|---|
| Gross Revenue | $178,200 | Starting point |
| Discounts | −$15,400 | 8.6% discount rate |
| Refunds | −$6,400 | 3.6% refund rate |
| Net Revenue | $156,400 | Final revenue |
How It Works
Net Revenue starts with Gross Revenue (product sales before adjustments), then subtracts all discount codes and promotional offers applied at checkout, and all refunds issued post-purchase. This gives you the actual revenue retained from customer transactions.
When to Use
| Scenario | Action |
|---|
| Profitability analysis | Use Net Revenue as your baseline for margin calculations |
| Discount impact assessment | Compare to Gross Revenue to measure promotion costs |
| Refund rate monitoring | Track refund amount as a percentage of gross |
| Financial reporting | Report Net Revenue as actual earned revenue |
| Metric | Relationship |
|---|
| Gross Revenue | Revenue before deductions (Net = Gross − Discounts − Refunds) |
| Total Revenue | Includes shipping and taxes |
| Net AOV | Net Revenue ÷ Order Count |
| Orders | Count of orders generating this revenue |
