> For the complete documentation index, see [llms.txt](https://docs.bloomanalytics.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bloomanalytics.io/my-metrics/profit-metrics.md).
# Profit Metrics
Break Shopify store profitability into Product Gross Profit, Gross Profit, Contribution Profit, and Net Profit tiers to see exactly where margin is won or lost.
### What is Profit Metrics?
Profit Metrics is the view in Bloom's My Metrics that breaks a store's profitability down from Gross Profit to Net Profit in four sequential tiers. It is for e-commerce merchants and brand owners who want true profitability rather than top-line revenue, finance and analytics teams reconciling Shopify or Amazon channel profitability, and product or growth teams deciding where to intervene. It turns one static profit figure into a diagnostic sequence a merchant can act on.
### How it Works
Profit Metrics maps to the system grid interfaces on the My Metrics view. Instead of reporting one final profit number, it breaks profitability into four sequential tiers, each with a corresponding margin percentage. Every tier subtracts one additional layer of cost, so a merchant can trace exactly which cost layer is compressing margin.
**Product Gross Profit**
Product Gross Profit = Total Revenue - Product Cost. Product Gross Profit represents the revenue remaining after deducting the direct cost of the goods sold(COGS).
Product Gross Margin % = (Product Gross Profit) / (Total Revenue). A Gross Margin of around 75% or higher is generally considered a strong indicator of healthy product-level profitability.
**Gross Profit**
Gross Profit = Total Revenue - Product Cost - Order Fulfillment Costs. This is the profit remaining after deducting both product cost and order fulfillment expenses from Total Revenue. It shows the amount the business retains after covering these core costs.
Gross Margin % = (Gross Profit) / (Total Revenue). A Gross Profit of 60% or more is typically regarded as a healthy target, though this benchmark can fluctuate based on product assortment and pricing strategy.
**Contribution Profit**
Contribution Profit = Total Revenue - Product Cost - Order Fulfillment Costs - Marketing Spend. This is the profit remaining after accounting for product, fulfillment, and marketing expenditures.
Contribution Margin % = (Contribution Profit) / (Total Revenue). A healthy Contribution Profit% generally falls between 30% and 45%, though the optimal percentage may vary depending on the brand's growth stage and marketing strategy.
**Net Profit**
Net Profit = Contribution Profit - Operating Expenses, i.e. Total Revenue - Product Cost - Order Fulfillment Costs - Marketing Spend - Operating Expenses. This is the final profit the store earns after covering product, fulfillment, marketing, and operational costs, and represents overall profitability and financial health.
Net Profit Margin % = (Net Profit) / (Total Revenue). For most e-commerce businesses, a net profit margin ranging from 10% to 20% is typically viewed as a sign of financial health.
