Net sales
Net sales are the final revenue a company earns from its primary operations after accounting for various deductions. These deductions include returns, allowances, and sales discounts subtracted from the gross sales figure.
Distinguishing gross sales from net sales provides insights into the quality of sales transactions, ensuring transparency in financial reporting. In the context of eCommerce, net sales are an important metric for an online store, marketplace, or company. It can be used to evaluate the business performance of the eCommerce player.
How to calculate net sales: Net Sales = Gross Sales - Returns - Allowances - Discounts
Glossary entries with N
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