Net margin: Definition, Formula & Why It Matters
Also called: Net profit margin
Net margin is your net profit as a percentage of the gross sale, after Reverb fees, item cost, and shipping. It is the truest measure of profitability on a sale, because it accounts for everything that actually comes out of the order.
Net margin formula
Example
A $640 sale that nets $249.09 has a net margin of 38.9%.
Why it matters for Reverb sellers
Net margin is the number that survives contact with reality. A sale can look great on gross margin and still disappoint on net once fees and shipping are in. Tracking net margin keeps you honest about what each sale really earns.
How Verbstack helps
Verbstack calculates net margin on every order and across your shop, so you always know your real profitability.
Try it yourself with the Reverb Profit Margin Calculator.
Track this on every order, automatically.
- ✓ Real fees, margins, and profit on every Reverb sale
- ✓ COGS and inventory tracked for you, no spreadsheet
- ✓ Full history and a live monthly P&L
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See this number on every order.
Connect your Reverb shop and Verbstack tracks your fees, margins, and profit automatically.
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