E-commerce Glossary

Gross Revenue

Total sales before any deductions (discounts, refunds, taxes). This is the revenue displayed by your CMS.

Gross revenue is the total amount of sales made before any deductions. It includes orders that will later be refunded, applied discounts, and collected taxes.

It is the most visible metric in your CMS (PrestaShop, WooCommerce, Shopify), but also the most misleading. A gross revenue of $100,000 means nothing if 15% is refunded, 20% goes to taxes, and 5% to discounts.

Net revenue -- after deducting refunds, discounts, and taxes -- is the metric to use for calculating your margins and real profitability. Fullmetrix automatically calculates the gross-to-net transition for every order.

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