Net margin is the profit left after all costs — product, variable selling costs, fixed costs, payroll, before tax — as a share of revenue. In e-commerce the band considered healthy is 5%–15%, depending on category.
Net margin falling while revenue grows is the clearest sign that the growth is unhealthy. Many stores in Turkey mistake revenue for success; but if revenue rises while net margin falls, you are sinking as you grow. Net margin should be tracked monthly, broken out by channel and category.
Net margin % = Net profit ÷ Total revenue × 100
2,000,000 TL revenue and 160,000 TL net profit → 8% net margin.
Net margin falling while revenue grows is the clearest sign that the growth is unhealthy. Many stores in Turkey mistake revenue for success; but if revenue rises while net margin falls, you are sinking as you grow. Net margin should be tracked monthly, broken out by channel and category.
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