Gross Profit
Category: Pricing
Definition (plain English)
Gross profit is sales revenue minus the cost of goods sold for the units sold, before overheads and operating expenses.
Why it matters commercially
Gross profit shows whether a product or shipment creates enough money after product and delivered costs to support channel discounts, overhead, and risk.
Example
An imported pallet sold for $18,000 but carried $12,700 in product, freight, duty, and local handling cost, leaving $5,300 gross profit before overhead.
Common mistake
Calculating gross profit from supplier invoice cost only while leaving freight, duty, destination charges, and write-offs outside COGS.
Use this in CommerceKit
Landed Cost
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