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What Is Profit Margin?

Profit Margin the percentage of revenue that remains as profit after costs are deducted. Gross margin excludes operating expenses; net margin includes all costs.

How Dashboardly Tracks Profit Margin

Dashboardly calculates Profit 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 Profit Margin?

TikTok Shop: 40-65% gross margin, 10-25% net margin. Top sellers achieve 20-30% net.

How do I calculate Profit Margin?

Gross Margin = (Revenue – COGS) / Revenue × 100. Net Margin = Net Profit / Revenue × 100.

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

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

When should I track Profit Margin?

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

Related tools & resources

For a deeper look at Profit Margin, see The True Profit Formula for TikTok Shop: Calculate Your Real Margins.

The percentage of revenue that remains as profit after costs are deducted. Gross margin excludes operating expenses; net margin includes all costs.
Definition

The percentage of revenue that remains as profit after costs are deducted. Gross margin excludes operating expenses; net margin includes all costs.

Formula

Gross Margin = (Revenue – COGS) / Revenue × 100. Net Margin = Net Profit / Revenue × 100.

Example Calculation

$30 product, $12 COGS = 60% gross margin. After all fees/expenses = 18% net margin.

Benchmarks for TikTok Shop Sellers

TikTok Shop: 40-65% gross margin, 10-25% net margin. Top sellers achieve 20-30% net.

Why It Matters for TikTok Shop Sellers

The percentage of revenue that remains as profit after costs are deducted. Gross margin excludes operating expenses; net margin includes all costs.

Related Terms

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