Net profit and net additional profit
Net profit
The net profit for an order item will be calculated for items for which the base cost of the product is given. In the calculation of net profit, we subtract the following values from the gross revenue on a given order item (Order Value column):
- Order VAT amount
- Cost of the product
- Net cost of shipping and handling
- Marketplace commission
- Marketplace fixed charge
- Marketplace chargeback
- Provision for returns
- Nethansa commission
Net additional profit
Net additional profit is provided for order items that did not have a fixed price set. The additional profit is calculated based on the difference between the selling price and the minimum price, taking into account the VAT, returns reserve, commission charged by the marketplace, and Nethansa commission.
The additional profit will be calculated if the minimum price for the offer associated with the order item was set based on the minimum markup percentage (individual for the offer or default for the marketplace) or was given as an amount fixed minimum price.
The additional profit is the profit value generated by Nethansa Platform Dynamic Pricing for a selling price above the minimum price.