How to Calculate Profit Margins for Private Label Activewear?

Calculate gross margin by subtracting the cost of goods sold from net sales revenue, then dividing that gross profit by net sales revenue and multiplying by 100.

Use a consistent cost basis that accounts for the costs assigned to bringing inventory into saleable condition. Gross margin is different from markup and net profit.

Model payment fees, fulfillment, marketing, discounts, and returns separately to assess whether the collection can support operating expenses.