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How to calculate net profit on Uzum: from revenue to profit

MARGN team · · 6 min read
How to calculate net profit on Uzum: from revenue to profit

Many sellers judge a month by revenue: “this month I sold 80 million”. But noticeably less ends up in the account, and it is unclear where the difference went. The reason is simple — between revenue and net profit there are at least six cost items.

Revenue and net profit — what is the difference

Revenue is the total amount buyers paid. Net profit is what is left to you after all costs. If you do not see the difference, it is easy to miss that a product that sells well is actually losing money.

What is subtracted from revenue

  • Cost price — the purchase or production price of the product, including delivery.
  • Marketplace commission — depends on the category, so check it for each product.
  • Logistics — delivery to the warehouse and to the buyer.
  • Advertising — spending on in-platform advertising.
  • Returns — reduce revenue and sometimes add costs.
  • Tax — depends on your tax regime.

Do not forget warehouse services, packaging, staff and other fixed costs as well.

A simple formula

Net profit = Revenue − Cost price − Commission − Logistics − Advertising − Returns − Tax − Other costs

Margin is the share of net profit in revenue: Margin = Net profit ÷ Revenue × 100%.

Example

Say monthly revenue is 50 million UZS. Cost price is 50% of revenue, commission 15%, logistics 7%, advertising 6%, returns 4%, tax 4%. Total costs are 86%. So net profit is 50 million × 14% = 7 million UZS, margin 14%.

The numbers are illustrative. Put your own percentages into the profit calculator — the result may surprise you.

Calculate for each product

The store's total profit may be positive, but inside it several products work at a loss and “eat” the money of the profitable ones. So calculate for each SKU: with its cost price, commission, logistics and advertising.

When you find an unprofitable product, there are three paths: raise the price, cut costs (for example, trim advertising) or take it off sale.

How to do without Excel

Doing this calculation by hand every month takes long and it is easy to make mistakes. The MARGN store cabinet connects to your Uzum cabinet and automatically shows net profit after commission, logistics, advertising, warehouse and cost price — for every SKU.

In short: look not at revenue but at net profit — and calculate it for each product.

A related opportunityFinance and cost price →
Calculate how much profit is left from selling a product on Uzum.7 days of full access, no card required.
Calculate profit →

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