Gross margin
Gross margin is the percentage of revenue left after subtracting the cost of goods sold.
Gross margin is gross profit expressed as a percentage of revenue — what's left of each euro of sales after paying for the product itself, before overheads. It's the clearest measure of product-level profitability and the lever behind pricing, discounting and product-mix decisions. Two products with identical revenue can have wildly different margins; tracking margin (not just revenue) is what separates growing profitably from growing broke.
How it's measured
Gross margin % = (revenue − COGS) ÷ revenue × 100. Compute per product and per category to find your real winners.
Related terms
Cost of goods sold (COGS)
COGS is the direct cost of the products you sold — what they cost you to buy or make.
Average order value (AOV)
Average order value is the mean amount spent per order — total revenue divided by number of orders.
Customer lifetime value (CLV / LTV)
Customer lifetime value is the total revenue (or profit) a customer generates across their entire relationship with your store.