Know What Your Store Actually Makes

Revenue looks impressive.

Profit pays the bills.

The E-Commerce Profit Calculator – Practical Guide & Workbook is a detailed digital business resource designed to help online sellers calculate real product profitability, understand their costs, evaluate advertising performance and make smarter pricing decisions.

Learn how to calculate:

Profit • Margins • COGS • ROAS • CAC • Break-Even • Pricing • Shipping • Discounts

Digital PDF • Instant Download • 2026 Edition

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E-Commerce Profit Calculator Guide & Workbook

Running an online store is easy to measure in sales.

Understanding how much money you actually keep is much harder.

A product can generate £1,000, £10,000 or even £100,000 in revenue while losing money once product costs, shipping, advertising, transaction fees, refunds, discounts and other expenses are included.

The MarketiBo E-Commerce Profit Calculator Guide & Workbook was created to help entrepreneurs look beyond revenue and understand the real economics behind every order.

This practical digital guide combines essential e-commerce formulas, worked examples, profitability frameworks, calculation schemes and business worksheets into one resource designed for online sellers.

What Will You Learn?

The guide helps you understand and calculate the financial metrics that influence the profitability of an e-commerce business.

Revenue & Net Sales

Understand the difference between headline revenue and the money that actually remains after discounts, refunds and adjustments.

Cost of Goods Sold – COGS

Calculate the true product cost behind every sale.

Learn how supplier cost, packaging and related product expenses affect your margins.

Landed Cost

Understand how to calculate the complete cost of bringing a product into your business, including relevant shipping and cross-border expenses.

Gross Profit

Calculate how much remains after the direct cost of your products.

Gross Margin

Learn why profit expressed as a percentage can be more useful than simply looking at monetary profit.

Contribution Margin

Discover how much each order contributes after variable selling expenses.

Net Profit

Move beyond sales figures and calculate what your business actually earns.

Calculate Your Real E-Commerce Profit

A simple example:

Selling Price

£79.99

Product Cost

£28.45

Then add:

• Shipping
• Payment processing
• Platform fees
• Advertising
• Discounts
• Returns allowance
• Other variable costs

Only after these costs have been considered can you understand the real contribution generated by the sale.

The workbook gives you structured methods for making these calculations.

E-Commerce Pricing

Pricing is not simply:

Product Cost + Markup

Your selling price needs to support the entire economics of the transaction.

The guide explores how pricing interacts with:

• COGS
• Gross margin
• Contribution margin
• Shipping
• Advertising
• Customer acquisition
• Returns
• Promotions
• Payment costs
• Target profit

Use the workbook before deciding whether a product should sell for:

£19.99

£29.99

£49.99

or £79.99.

Understand Your Profit Margin

One of the most important calculations in online business is:

Profit Margin = Profit ÷ Revenue × 100

But the usefulness of that number depends on which definition of profit you are measuring.

The guide explains the difference between several levels of profitability so you can avoid confusing gross margin with actual business profitability.

COGS Calculator Framework

Your Cost of Goods Sold can have an enormous impact on whether your product can support advertising, promotions and shipping.

The workbook helps you map:

Supplier Cost

• 
  

Packaging

• 
  

Product-Specific Costs

=

COGS

and then understand how additional costs transform COGS into a more complete landed and transaction cost.

Advertising & ROAS

A campaign can have a positive ROAS and still produce disappointing profit.

The guide explores the relationship between:

Advertising Spend

Revenue

ROAS

Customer Acquisition Cost

Contribution Margin

Break-Even Point

Instead of asking only:

“What is my ROAS?”

you can begin asking:

“What ROAS does my business actually need to remain profitable?”

Break-Even ROAS

Learn how your margin determines how much advertising your store can afford.

A business with a high gross margin can tolerate a very different advertising cost structure from a business operating with narrow product margins.

Understanding this relationship is essential before scaling paid advertising.

Customer Acquisition Cost – CAC

Calculate how much it costs your business to acquire a paying customer.

Compare acquisition cost with:

• Initial order value
• Contribution profit
• Average order value
• Repeat purchases
• Customer lifetime value

This helps you determine whether an advertising campaign is genuinely sustainable.

Shipping Economics

Free shipping is not free.

Someone always pays for it.

The workbook helps you evaluate:

Customer-Paid Shipping

vs.

Seller-Funded Shipping

vs.

Free Shipping Above a Minimum Order

This allows you to analyse whether a free-shipping threshold can increase Average Order Value without destroying your margin.