Revenue

Net Product Revenue

Gross shipped revenue minus refunds, A-to-Z claims and chargebacks: the product money you actually kept.

Formula

This is revenue after every route by which product money comes back out post-shipping. Refunds are the visible one. A-to-Z claims and chargebacks are the two most spreadsheets forget.

Net product revenue excludes shipping and gift-wrap revenue, which are added in the next step to reach net revenue.

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

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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