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What Is Gross Margin?

Gross Margin the percentage of revenue remaining after subtracting the cost of goods sold (COGS). It shows how much of each dollar is available to cover operating expenses and profit.

How Dashboardly Tracks Gross Margin

Dashboardly calculates Gross Margin from your live TikTok Shop data — pulling actual orders, fees, refunds, and returns so the number you see matches your P&L.

  • Actual order revenue — not estimated or attributed revenue
  • Refunds and returns deducted automatically
  • All platform fees included for profit-level accuracy
  • Historical trends so you spot changes before they hit profit

Frequently asked questions

What is a good Gross Margin?

Beauty: 65-80%. Fashion: 50-65%. Electronics: 30-45%. Health: 60-75%. Home: 45-60%.

How do I calculate Gross Margin?

Gross Margin (%) = ((Revenue - COGS) / Revenue) × 100

Why is my Gross Margin different from what TikTok Shop reports?

TikTok's native reports use attributed metrics with click- and view-through windows. Dashboardly calculates Gross Margin from actual order revenue, deducting refunds and returns for a truer number that matches your real P&L.

When should I track Gross Margin?

Gross Margin is a leading indicator — check it daily if you're running ads or running pricing experiments, weekly otherwise. Dashboardly tracks Gross Margin automatically so you don't have to pull exports.

Related tools & resources

Want more context on Gross Margin? TikTok Shop Fee Calculator.

The percentage of revenue remaining after subtracting the cost of goods sold (COGS). It shows how much of each dollar is available to cover operating expenses and profit.
Definition

The percentage of revenue remaining after subtracting the cost of goods sold (COGS). It shows how much of each dollar is available to cover operating expenses and profit.

Formula

Gross Margin (%) = ((Revenue - COGS) / Revenue) × 100

Example Calculation

($24.99 - $8.50) / $24.99 = 66% gross margin

Benchmarks for TikTok Shop Sellers

Beauty: 65-80%. Fashion: 50-65%. Electronics: 30-45%. Health: 60-75%. Home: 45-60%.

Why It Matters for TikTok Shop Sellers

The percentage of revenue remaining after subtracting the cost of goods sold (COGS). It shows how much of each dollar is available to cover operating expenses and profit.

Related Terms

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