Free tool

Net profit per order

Revenue is not profit. See what one order really keeps after product cost, shipping, COD fees, returns and ads.

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Profit before ads = (1 − return rate) × (price − product cost) − shipping − COD fee. That same number is the most you can pay in ads per order before you lose money. Net profit = profit before ads − ad cost per order.

Assumptions: Returned orders earn no margin but still cost shipping and the COD fee. Returned goods are assumed restocked, and return shipping is assumed inside the shipping cost. Illustrative: price 1,000, product 400, shipping 80, no COD fee, 20% returns, ads 300 per order → 100 net.