What is Profit?
Profit is the amount of money your company gains when your earnings exceed your expenses, costs, and taxes. Calculating profit and setting profit goals are important practices for ecommerce brands as it is always healthy to assess overall costs and expenses of producing and buying products in relation to gross sales.
How to calculate profit
The simplest way to calculate profit is to take your price and subtract your cost. Though this seems relatively simple, the caveat here is that there can be a lot of factors that go into your overall costs. Everything from costs of production to cost of buying goods to overhead, labor, and other operational costs.