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What is Profit Margin?
Profit margin is the percentage of revenue that remains as profit after all costs are deducted. It's calculated as (Selling Price - Cost Price) / Selling Price × 100.
For e-commerce businesses, understanding profit margins is crucial for pricing products competitively while maintaining profitability.
Margin vs Markup: What's the Difference?
Margin is the percentage of the selling price that is profit. Markup is the percentage added to the cost price to arrive at the selling price.
For example, if you buy a product for $50 and sell it for $100: your margin is 50% but your markup is 100%.
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