Revenue

Gross Shipped Revenue

Gross ordered revenue minus orders cancelled before shipment: the value of what actually left the warehouse.

Formula

A cancelled order never becomes money, so it has no place in a profitability calculation. Removing cancellations from gross ordered revenue gives the value of goods that were physically shipped to a customer.

Gross shipped revenue is still gross: refunds, A-to-Z claims and chargebacks have not yet been taken out. Those come next.

Where it sits in the waterfall

  1. 1Gross Ordered Revenue
  2. 2Gross Shipped Revenue
  3. 3Net Product Revenue
  4. 4Net Revenuecheckpoint
  5. 5Product Margincheckpoint
  6. 6Channel Margincheckpoint
  7. 7Growth Margincheckpoint
  8. 8Net Operating Profitcheckpoint

Related terms

See the whole waterfall worked through.

Our guide walks all eight steps with real numbers: How to calculate Amazon net margin.

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