Gross margin is what is left after product cost is subtracted from the selling price, expressed as a share of that price. It is the base number every advertising and agency decision in e-commerce rests on; without knowing gross margin, no ROAS target can be set meaningfully.
A correct calculation adds to product cost not just the purchase price but freight, customs, packaging and any spoilage. The most common mistake in Turkey is failing to deduct marketplace commission and shipping from gross margin, which hides the fact that products believed profitable are actually losing money. No advertising budget should be allocated before a gross margin table by category exists.
Gross margin % = (Selling price − Product cost) ÷ Selling price × 100
300 TL sale, 180 TL product cost → 120 TL gross margin, or 40%. Break-even ROAS is 2.5x.
A correct calculation adds to product cost not just the purchase price but freight, customs, packaging and any spoilage. The most common mistake in Turkey is failing to deduct marketplace commission and shipping from gross margin, which hides the fact that products believed profitable are actually losing money. No adve…
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