Term

Margin

Margin shows the 'buffer' for discounts and promotions.

Formula

Margin % = (Margin $ / Actual Selling Price) × 100%

how much money remains after expenses, usually in $ or as a % of revenue.

Details

On marketplaces, it is important to specify what type of margin: gross, after marketplace fees, or after advertising. "30% margin" without clarification often indicates a calculation error.

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