Margin
Category: Pricing
Definition (plain English)
Margin is the share of sales revenue left after selected costs, usually expressed as gross margin, contribution margin, or net margin depending on what costs are included.
Why it matters commercially
Margin is the commercial control number for pricing, channel terms, and supplier negotiation, but it only helps if the cost base is complete and consistently defined.
Example
A product expected to deliver 32% gross margin fell to 19% after destination charges, duty, broker fees, and distributor rebates were included.
Common mistake
Calling a quote profitable before defining whether margin includes landed cost, freight, duty, rebates, payment fees, FX buffer, and markdown allowance.
Use this in CommerceKit
Landed Cost
Use tool →Target Buy Price Calculator
Use tool →Markup vs Margin
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