Gross margin
Gross margin is the share of revenue left after product cost (COGS). Gross profit is the amount; gross margin is that amount as a percentage of revenue.
Formula
Gross profit = Revenue − COGS · Gross margin % = Gross profit ÷ Revenue
Example
($10,000 revenue − $4,000 COGS) ÷ $10,000 = 60% gross margin.
In Analify
Analify uses the product costs in your Business Brain to show gross margin per product, then continues down to Blended Profit after shipping, returns and ads.
Questions
Why isn’t gross margin enough for ecommerce?
Shipping, returns and ad spend often take more than half of the gross profit. Contribution margin and Blended Profit include them.
Where do product costs come from?
You add them in Analify or through the Analify MCP; they live in the Business Brain.
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