Net profit: Definition, Formula & Why It Matters

Also called: Real profit, Bottom line

Net profit is what you actually keep from a sale after every cost: Reverb fees, what the item cost you, and your shipping cost. It is the single most important number for a Reverb seller and the one most often confused with the payout.

Net profit formula

Net profit = Reverb payout − item cost − shipping cost

Example

A $504.47 payout on an item that cost $250 with $45 shipping nets $209.47.

Why it matters for Reverb sellers

Net profit is the only number that tells you whether a sale actually made you money. Tracking it per order reveals which gear is worth your time and which is quietly losing you money despite a healthy-looking payout.

How Verbstack helps

Verbstack calculates true net profit on every order automatically, so you see your real bottom line without a spreadsheet.

Try it yourself with the Reverb Fee 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.

Get started free

Free forever to get started. No credit card required.