Of margin and mark-up really are, which today are very often confused in Polish e-commerce. Despite some similarity, these terms are not the same. What is the margin and what is the mark-up? According to the commonly accepted definition, the margin is the ratio of profit from sales to the selling price, expressed as a percentage. It can be represented as follows: Margin = (sale price - purchase price) sale price For the purposes of running an online store, the margin is calculated primarily when the entrepreneur wants to know exactly how much his profit is in the context of all revenues.
This indicator is important because it shows how Mexico WhatsApp Number List much profitability of sales is shaped for specific products. In this way, you can compare the individual values \u b\u bof the goods offered in the store in terms of their different prices available to consumers. When discussing the issue of margin sensu largo, it is worth knowing that the following are distinguished: – net margin, – gross margin. The first of the above is nothing more than the ratio of net profit to the total value of sales in a given period. The entrepreneur then takes into account all the costs incurred by his company.
Gross margin, on the other hand, is an indicator in connection with which the costs taken into account are only related to the direct sale of the offered goods. As emphasized in the introduction of this article, the margin should not be confused with the mark-up. The second term defines the difference between the price of a good and the cost of its purchase or production. In practice, it can even be said that it is the amount by which the price of the product sold is higher than the cost of its purchase or production. In addition, in practice.