{"id":14551,"date":"2023-01-08T22:11:07","date_gmt":"2023-01-09T03:11:07","guid":{"rendered":"https:\/\/onecommerce.io\/blog\/?p=14551"},"modified":"2023-04-20T03:53:15","modified_gmt":"2023-04-20T07:53:15","slug":"net-profit-margin-2023","status":"publish","type":"post","link":"https:\/\/onecommerce.io\/blog\/2023\/01\/08\/net-profit-margin-2023\/","title":{"rendered":"6 Important Things about Net Profit Margin to Know for 2023"},"content":{"rendered":"<p><a href=\"https:\/\/onecommerce.io\/blog\/net-profit-margin-2023\/#net-profit-margin\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\"><b><i>Net profit margin<\/i><\/b><\/a><i><span style=\"font-weight: 400;\"> is an important indicator of a store&#8217;s financial health and profitability. It helps you understand the overall success of your small eCommerce business and identify areas where expenses can be reduced or sales increased.\u00a0<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">Additionally, you can get a better understanding of how to maximize profits, reduce costs and make informed decisions about investments.\u00a0<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">Due to these tremendous functions, the net profit margin is one of the most crucial factors that sellers frequently think about and find ways to improve the situation.<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">Don\u2019t worry as this blog will help you solve some of the most common inquiries surrounding net profit margin, such as what it is, how it is calculated, and some strategies to increase the profit margin.<\/span><\/i><\/p>\n<h2><b>What is Net Profit Margin?<\/b><\/h2>\n<div id=\"attachment_14554\" style=\"width: 1210px\" class=\"wp-caption aligncenter\"><img aria-describedby=\"caption-attachment-14554\" class=\"wp-image-14554 size-full\" src=\"https:\/\/onecommerce.io\/blog\/wp-content\/uploads\/2023\/01\/What-is-net-profit-margin.jpg\" alt=\"Net profit margin is the amount of net income generated as a percentage of revenue\" width=\"1200\" height=\"675\" title=\"\"><p id=\"caption-attachment-14554\" class=\"wp-caption-text\">Net profit margin is the amount of net income generated as a percentage of revenue<\/p><\/div>\n<p><span style=\"font-weight: 400;\">The net income or profit generated as a percentage of revenue is expressed as the <\/span><b>net profit margin<\/b><span style=\"font-weight: 400;\">, or simply <\/span><b>net margin<\/b><span style=\"font-weight: 400;\">. Although the net profit margin is frequently expressed as a percentage, it can also be given in decimal form sometimes.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In addition, the net profit margin is also one of the most crucial measures of an eCommerce business&#8217; financial health. An online site can determine whether its existing procedures are effective and estimate earnings based on revenues. It can be conducted by monitoring growth and reductions in the store\u2019s net profit margin.<\/span><\/p>\n<h2><b>What is reflected in the net profit margin?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Net profit margin makes it easy for store owners to compare the profitability of two or more stores regardless of size. That\u2019s because most stores represent their net profit margin as a percentage rather than a monetary value.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To enable profit comparison between stores, net profit margin takes into account all aspects of your store operations, such as:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Total income<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Additional sources of income<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">COGS and other operating costs<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Interest expense on debt obligations<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Income from investments and secondary operations<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">One-off payments for unanticipated circumstances like lawsuits and taxes<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">According to this, store owners can determine whether their management is making a sufficient profit from sales and whether operational costs and overhead costs are being kept under control.<\/span><\/p>\n<h2><b>What is a good net profit margin?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Now, you might be wondering, &#8220;What constitutes a decent profit margin?&#8221;\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In general, a <\/span><b>10% <\/b><span style=\"font-weight: 400;\">net profit margin is regarded as typical, a <\/span><b>20%<\/b><span style=\"font-weight: 400;\"> margin as high (or &#8220;excellent&#8221;), and a<\/span><b> 5%<\/b><span style=\"font-weight: 400;\"> margin as low.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, remember that these rules differ greatly by industry and store size and can be influenced by a wide range of other circumstances.<\/span><\/p>\n<h2><b>How is the net profit margin calculated?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">To know how the net profit margin is calculated, first, you will need to know some of the metrics used in the calculation.<\/span><\/p>\n<div id=\"attachment_14555\" style=\"width: 1210px\" class=\"wp-caption aligncenter\"><img aria-describedby=\"caption-attachment-14555\" class=\"wp-image-14555 size-full\" src=\"https:\/\/onecommerce.io\/blog\/wp-content\/uploads\/2023\/01\/How-is-net-profit-margin-calculated.jpg\" alt=\"Store owners should know these terms before calculating their net profit margin.\" width=\"1200\" height=\"800\" title=\"\"><p id=\"caption-attachment-14555\" class=\"wp-caption-text\">Store owners should know these terms before calculating their net profit margin.<\/p><\/div>\n<h3><b>Revenue<\/b><\/h3>\n<p><b>Revenue<\/b><span style=\"font-weight: 400;\"> is the total amount of money your business brings in during a given time frame. The price of your goods or services is multiplied by the quantity or amount sold.\u00a0<\/span><\/p>\n<h3><b>Cost of goods sold (COGS)<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The direct cost of the labor and materials used to make your product is referred to as the \u201c<\/span><b>cost of goods sold (COGS)<\/b><span style=\"font-weight: 400;\">\u201d. It means the term \u201ccost of goods sold\u201d covers the price of:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Hosting<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Receiving raw materials<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Delivering the products to the specific destination<\/span><\/li>\n<\/ul>\n<h3><b>Operating expenses<\/b><\/h3>\n<p><b>Operating expenses<\/b><span style=\"font-weight: 400;\"> are the entire costs incurred by your business on a daily basis that are not immediately related to production. It contains:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Sales commissions on payroll<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Employee advantages<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Contributions to a pension<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Travel \\Rent\\Repairs<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Taxes<\/span><\/li>\n<\/ul>\n<h3><b>Net profit<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The <\/span><b>net profit<\/b><span style=\"font-weight: 400;\"> is frequently referred to as the &#8220;bottom line&#8221; of a company and is also a reliable predictor of its profitability. In other words, net profit is the total revenue of a business after subtracting all costs. The costs may be from business operations as well as depreciation and taxes.\u00a0<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td style=\"border-style: solid; text-align: center;\"><b>Net profit = Revenue &#8211; (COGS + Operating costs + Taxes)<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: left;\"><span style=\"font-weight: 400;\">For instance, your company\u2019s total income is $12,000, its total expenses are $8000, and its operating costs and taxes are $2000. So, you will have:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td style=\"border-style: solid; text-align: center;\"><b>Net profit = $12,000 &#8211; ($8000 + $1000 +$1000) = $2000<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3 style=\"text-align: left;\"><b>Net profit margin calculation<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Net profit margin is determined by dividing net profit by total revenue and multiplying the result by 100.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Still, it is helpful to first understand the factors that determine your net profit margin calculation, such as net profit, operational costs, and cost of sales, as we mentioned above, before going into how to calculate your net profit margin.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you already have all the necessary figures, you can calculate the net profit margin by following this formula:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td style=\"border-style: solid; text-align: center;\"><b>Net profit margin = (Net profit\/Total revenue) x100<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">For instance, we have a net profit of $2000, which was calculated before. According to the formula, we will have:<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td style=\"border-style: solid; text-align: center;\"><b>Net profit margin = (2000\/12000) x100 = 16,67%<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 style=\"text-align: left;\"><b>How to improve net profit margin<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">It\u2019s essential to stay mindful of the profit margin when running an online store. Increasing the net profit margin is not only beneficial for the business itself but also for its shareholders and other stakeholders.\u00a0<\/span><\/p>\n<div id=\"attachment_14556\" style=\"width: 1210px\" class=\"wp-caption aligncenter\"><img aria-describedby=\"caption-attachment-14556\" class=\"wp-image-14556 size-full\" src=\"https:\/\/onecommerce.io\/blog\/wp-content\/uploads\/2023\/01\/How-to-improve-net-profit-margin.jpg\" alt=\"Increasing the net profit margin also means boosting the store\u2019s profitability.\" width=\"1200\" height=\"800\" title=\"\"><p id=\"caption-attachment-14556\" class=\"wp-caption-text\">Increasing the net profit margin also means boosting the store\u2019s profitability.<\/p><\/div>\n<p><span style=\"font-weight: 400;\">To increase your profit margin, you should consider focusing on driving sales revenue up and minimizing production costs and operating expenses. If done correctly, these efforts will help raise the net profit margin, making your eCommerce business more successful.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Hence, we will show you some ways to boost your net profit margin.<\/span><\/p>\n<h3><b>1. Lower operating costs<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">By cutting down operating costs and expenses, you can quickly improve profitability, and profit margins can be rapidly increased.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, it&#8217;s important to know where and how to cut expenses. It can be challenging to identify areas of excessive spending since the sources of expenditure vary greatly from store to store.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Still, you can always start with the basic operational costs, including labor costs, employee benefits, insurance, and more.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We recommend you use the software. Investing in a high-quality and feature-rich software package could help streamline operations and provide long-term savings.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For instance, a good software package can save you time on tedious manual processes, such as accounting and payroll. It can also automate certain tasks that are currently consuming employee hours.\u00a0<\/span><\/p>\n<h3><b>2. Don&#8217;t get fixated on per-order profits<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Many store owners are afraid to lose money on an order, especially if doing so means severing ties with a disgruntled or angry consumer.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Nevertheless, you&#8217;re missing out on the opportunity to increase your net profit margin if you don\u2019t promptly and proactively address customer issues. That\u2019s because the customers are so used to receiving subpar service; as a result, they are shocked when stores proactively remedy a problem without charging them. In return, you&#8217;ll receive referral marketing and recommendations that are impossible to buy, in addition to the lifetime value of that customer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here are four strategies to invest in the future of your store and, ultimately, your long-term bottom line:<\/span><\/p>\n<ul>\n<li><b>When something inexpensive is broken<\/b><\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><span style=\"font-weight: 400;\">Send free replacements to consumers right away without making them deal with the return.<\/span><\/p>\n<ul>\n<li><b>When expensive items need to be returned<\/b><\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><span style=\"font-weight: 400;\">Rather than waiting until it arrives at your warehouse, send them a replacement as soon as they submit tracking information for the return of the costly item.<\/span><\/p>\n<ul>\n<li><b>When a long-time customer needs something as soon as possible<\/b><\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><span style=\"font-weight: 400;\">Give a long-time customer who needs something urgently a free overnight delivery.<\/span><\/p>\n<ul>\n<li><b>When a customer is not satisfied with a product<\/b><\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><span style=\"font-weight: 400;\">A proactive partial refund should be given to a consumer to help make up for his unhappiness.<\/span><\/p>\n<h3><b>3. Boost the average order value<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">You can increase your <\/span><b>average order value (AOV)<\/b><span style=\"font-weight: 400;\"> if you wish to boost your profit margin. It is known as the average monetary amount a customer spends per transaction in your store.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can calculate the average order value (AOV) using a straightforward formula.<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td style=\"border-style: solid; text-align: center;\"><b>Average order value (AOV) = Total revenue \/ Number of orders<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">In addition, AOV can be calculated for you by Shopify customer reports, or you can use a variety of practical apps available in the <\/span><a href=\"https:\/\/apps.shopify.com\/\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\"><b>Shopify App Store<\/b><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Still, there are multiple ways you can increase the average order value and, eventually, promote the net profit margin.<\/span><\/p>\n<div id=\"attachment_14557\" style=\"width: 1210px\" class=\"wp-caption aligncenter\"><img aria-describedby=\"caption-attachment-14557\" class=\"wp-image-14557 size-full\" src=\"https:\/\/onecommerce.io\/blog\/wp-content\/uploads\/2023\/01\/Boost-the-average-order-value.jpg\" alt=\"You can increase the average order value to boost the net profit margin.\" width=\"1200\" height=\"800\" title=\"\"><p id=\"caption-attachment-14557\" class=\"wp-caption-text\">You can increase the average order value to boost the net profit margin.<\/p><\/div>\n<h4><b>3.1 Provide recommendations for the targeted product<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Store owners can utilize their past purchases by including a &#8220;<\/span><b>most popular<\/b><span style=\"font-weight: 400;\">&#8221; or &#8220;<\/span><b>consumers also bought<\/b><span style=\"font-weight: 400;\">&#8221; section at the bottom of their browser.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Otherwise, you can generate suggestions based on the product that the customer is presently examining. This might be used as a personalized cross-sell strategy or to direct someone toward something they weren&#8217;t even aware they were looking for.<\/span><\/p>\n<h4><b>3.2 Establish a Free Shipping Threshold<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">One of the simplest strategies to raise average order value and net profit margin in your e-commerce store is a free shipping threshold. The good news is that it works, and this tactic is used on most e-commerce websites.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Setting a minimum purchase requirement for free shipping will probably persuade customers to make more transactions or purchase more expensive items. Because customers would feel like they got more for their money, the transaction would seem like a better deal.\u00a0<\/span><\/p>\n<h4><b>3.3 Provide product discounts with a minimum purchase threshold<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Another way you can increase sales for your store is by appealing to customers&#8217; needs to save money. Another option to reward customers who spend more than a certain amount at your store is to set a discount threshold.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By providing a discount, like 15% off orders of $100 or more, you enable your customers to benefit from special offers while raising your AOV and net profit margin at the same time.<\/span><\/p>\n<div id=\"attachment_14558\" style=\"width: 1210px\" class=\"wp-caption aligncenter\"><img aria-describedby=\"caption-attachment-14558\" class=\"wp-image-14558 size-full\" src=\"https:\/\/onecommerce.io\/blog\/wp-content\/uploads\/2023\/01\/Provide-product-discounts.jpg\" alt=\"By providing discounts, you enable customers to benefit from special offers.\" width=\"1200\" height=\"763\" title=\"\"><p id=\"caption-attachment-14558\" class=\"wp-caption-text\">By providing discounts, you enable customers to benefit from special offers.<\/p><\/div>\n<p><span style=\"font-weight: 400;\">However,<\/span><span style=\"font-weight: 400;\"> when setting discount thresholds or offering special discounts for first-time customers, make sure your incentives are clear and easy to understand. This will ensure that the discounts you offer are used in the most effective way possible.\u00a0<\/span><\/p>\n<h4><b>3.4 Cross-sell your products<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">You should spend some time designing your online shop so that it offers related products next to one another.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Cross-selling is a clever technique to help customers locate new goods. In addition, your customers should easily identify products that complement one another or the extra accessories in your store. Or, you can consider structuring your online store similarly to a physical store.\u00a0<\/span><\/p>\n<div id=\"attachment_14559\" style=\"width: 1210px\" class=\"wp-caption aligncenter\"><img aria-describedby=\"caption-attachment-14559\" class=\"wp-image-14559 size-full\" src=\"https:\/\/onecommerce.io\/blog\/wp-content\/uploads\/2023\/01\/Cross-sell-your-products.jpg\" alt=\"You can consider structuring your online store similar to a physical store.\" width=\"1200\" height=\"800\" title=\"\"><p id=\"caption-attachment-14559\" class=\"wp-caption-text\">You can consider structuring your online store similar to a physical store.<\/p><\/div>\n<p><span style=\"font-weight: 400;\">Finally, you can make the buying experience seamless by effortlessly moving the customer from one place to the next without making them navigate a lot. These activities will help your online store increase the average order value and the net profit margin.<\/span><\/p>\n<h3><b>4. Increase your brand credibility<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Gaining customers&#8217; trust is crucial for driving up net profit margins. While product qualities and pricing are simple for marketers and store owners to assess, trust is more difficult to quantify and fully comprehend.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In order to build customer trust for your eCommerce brand, here are some tips you can follow:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Make your homepage pleasant and compelling for potential customers.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Make it simple to obtain product information by providing detailed product descriptions and accurate search results.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Tell your brand&#8217;s story to give them a sense of authenticity.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Give customers social evidence, which may demonstrate customer pleasure.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Transparency in pricing and transaction expenses.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In short, gaining the confidence of new customers will motivate them to shop at your online store.<\/span><\/p>\n<h3><b>5. Establish a consumer loyalty program<\/b><\/h3>\n<p><a href=\"https:\/\/onecommerce.io\/blog\/customer-loyalty\/\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\"><span style=\"font-weight: 400;\">Customer loyalty programs<\/span><\/a><span style=\"font-weight: 400;\"> are an effective way to boost profit margins and profitability.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A store can make less profit if there is too little attention paid to customer retention and high customer acquisition costs. Therefore, you can develop a customer loyalty program to make transactions with current customers rather than paying money to locate and close new ones.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The most effective loyalty programs put the customer first. They offer genuine value that shows devoted customers your appreciation for their patronage and desire to work for their best interests.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While steep discounts aren&#8217;t financially feasible for small stores, you can still find ways to reward customers to encourage them to make more regular purchases and switch from low-margin to high-margin sales.<\/span><\/p>\n<h3><b>6. Increase product prices<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Many store owners worry that if they raise prices, their customers will stop buying from them,\u00a0 making their sales stop and the store out of business.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, if you&#8217;re reselling an already-existing product on your e-commerce site, a tiny price increase might significantly increase sales and improve your bottom line, particularly if there is consumer demand.<\/span><\/p>\n<div id=\"attachment_14560\" style=\"width: 1210px\" class=\"wp-caption aligncenter\"><img aria-describedby=\"caption-attachment-14560\" class=\"wp-image-14560 size-full\" src=\"https:\/\/onecommerce.io\/blog\/wp-content\/uploads\/2023\/01\/Increase-product-prices.jpg\" alt=\"A slight price increase might significantly increase sales and improve your net profit margin.\" width=\"1200\" height=\"800\" title=\"\"><p id=\"caption-attachment-14560\" class=\"wp-caption-text\">A slight price increase might significantly increase sales and improve your net profit margin.<\/p><\/div>\n<p><span style=\"font-weight: 400;\">Let\u2019s take a look at an example of how a price increase can elevate the proportion of the net profit margin.<\/span><\/p>\n<table style=\"width: 100%; height: 105px;\">\n<tbody>\n<tr style=\"background-color: #36ca98;\">\n<td style=\"border-style: solid; height: 21px; background-color: #f5f5f5;\"><\/td>\n<td style=\"text-align: center; border-style: solid; height: 21px; background-color: #f5f5f5;\"><b>Scenario A<\/b><\/td>\n<td style=\"text-align: center; border-style: solid; height: 21px; background-color: #f5f5f5;\"><b>Scenario B<\/b><\/td>\n<\/tr>\n<tr style=\"height: 21px;\">\n<td style=\"border-style: solid; height: 21px;\"><span style=\"font-weight: 400;\">Price at retail<\/span><\/td>\n<td style=\"border-style: solid; height: 21px;\"><span style=\"font-weight: 400;\">$200<\/span><\/td>\n<td style=\"border-style: solid; height: 21px;\"><span style=\"font-weight: 400;\">$210<\/span><\/td>\n<\/tr>\n<tr style=\"height: 21px;\">\n<td style=\"border-style: solid; height: 21px;\"><span style=\"font-weight: 400;\">Cost at wholesale<\/span><\/td>\n<td style=\"border-style: solid; height: 21px;\"><span style=\"font-weight: 400;\">$170<\/span><\/td>\n<td style=\"border-style: solid; height: 21px;\"><span style=\"font-weight: 400;\">$170<\/span><\/td>\n<\/tr>\n<tr style=\"height: 21px;\">\n<td style=\"border-style: solid; height: 21px;\"><span style=\"font-weight: 400;\">Profit:<\/span><\/td>\n<td style=\"border-style: solid; height: 21px;\"><span style=\"font-weight: 400;\">$30<\/span><\/td>\n<td style=\"border-style: solid; height: 21px;\"><span style=\"font-weight: 400;\">$40<\/span><\/td>\n<\/tr>\n<tr style=\"height: 21px;\">\n<td style=\"border-style: solid; height: 21px;\"><b>Profit margin:<\/b><\/td>\n<td style=\"border-style: solid; height: 21px;\"><b>17.65%<\/b><\/td>\n<td style=\"border-style: solid; height: 21px;\"><b>23.53%<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><b>Final thoughts<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">You, an online seller, would undoubtedly benefit from increasing the <\/span><b>net profit margin<\/b><span style=\"font-weight: 400;\">. Hence, you should check out these strategies above on how to improve the net profit margin as you work to increase business profitability. This way you&#8217;ll be able to decide more quickly in the future whether a new product or service will be successful and make wiser business decisions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With these suggestions in mind, we believe that you can build a solid foundation for your e-commerce site and endure any economic unpredictability over the long term.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The amount of net income or profit generated as a percentage of revenue is expressed as the net profit margin, or simply net margin.<\/p>\n","protected":false},"author":8,"featured_media":14596,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/onecommerce.io\/blog\/wp-json\/wp\/v2\/posts\/14551"}],"collection":[{"href":"https:\/\/onecommerce.io\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/onecommerce.io\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/onecommerce.io\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/onecommerce.io\/blog\/wp-json\/wp\/v2\/comments?post=14551"}],"version-history":[{"count":8,"href":"https:\/\/onecommerce.io\/blog\/wp-json\/wp\/v2\/posts\/14551\/revisions"}],"predecessor-version":[{"id":15789,"href":"https:\/\/onecommerce.io\/blog\/wp-json\/wp\/v2\/posts\/14551\/revisions\/15789"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/onecommerce.io\/blog\/wp-json\/wp\/v2\/media\/14596"}],"wp:attachment":[{"href":"https:\/\/onecommerce.io\/blog\/wp-json\/wp\/v2\/media?parent=14551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/onecommerce.io\/blog\/wp-json\/wp\/v2\/categories?post=14551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/onecommerce.io\/blog\/wp-json\/wp\/v2\/tags?post=14551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}