What is Gross Margin?
Gross margin is the percentage of revenue left after subtracting the direct cost of the products sold.
By Abdullah Ashraf · Last updated: October 2026
Example for a UK store
If you sell a product for £30 excluding VAT and it costs £12, your gross margin is 60%.
Why it matters
It shows how much money is left to cover marketing, fees and overheads.
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