KnowledgeGross Margin
GM% · The share of sales revenue left after the direct cost of goods sold.
Understand GM% in context.
Simply explained explanation
The share of sales revenue left after the direct cost of goods sold.
Professional explanation
Gross profit divided by net sales, expressing product economics before many operating and marketing expenses.
Analytical explanation
Use product- and category-level margin to prioritize campaigns. A strong ROAS on low-margin products can still lose money.
Technical explanation
Gross margin % = (net sales − COGS) / net sales × 100. COGS and revenue must follow the same accounting and tax convention.
Four complementary explanations — choose your level. Technical definitions are platform-specific where noted.
↗ How to use it
Link margin data to bidding or product groups.
⚠ Common interpretation mistake
Gross margin does not include all fulfilment, overhead or marketing costs.
Metric calculator
Adjust the inputs to see how the metric is calculated.