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Product Revenue

What a product actually earned once its markdowns came off.

60 second readAppears on: Products

What it means

Product Revenue is Gross SalesGross SalesRevenue before discounts; compare with Product Revenue for markdown cost. for a product minus the Product DiscountsProduct DiscountsSurfaces which products lean hardest on markdowns. applied to it, with tax included in the figure. It's a product line, so shipping never enters it — that's added further up, on Total Sales. Every table on Products sorts on this column by default, which makes it the number deciding what you see first.

Show the math

Formula and a worked example
Product Revenue = Gross Sales − Product Discounts (incl. tax)

Gross Sales is item price multiplied by quantity, before anything comes off. Product Discounts is the markdown applied to that product's lines.

Worked example. A hoodie sells 900 units at a €60 list price, so Gross Sales is €54,000. €6,300 of markdown came off it. Product Revenue = 54,000 − 6,300 = €47,700. Divide by the 900 units and each one sold for €53 against a €60 sticker.

Further down the same table, a second product also shows €47,700 — from 1,300 units, so €36.70 each. Identical revenue, completely different businesses: one sells fewer things dearly, the other sells more things cheaply. Only QuantityQuantityThe core volume measure across products. beside the euro figure separates them.

It answers the question

Which products are actually paying for the shop? Revenue at list price flatters everything you protected from discounting; this is the line after the markdown, which is the money that reached you.

Why it matters

It ranks your catalogue. Because every Products table sorts on it, this column decides which products you look at and which ones you never scroll to — so a product that quietly carries the shop on thin margins sits at the top, and one you're losing money on can sit two screens down.

The gap between it and Gross Sales is the exact cost of your discounting, per product, in euros rather than a percentage. That gap is often widest on the bestseller, which is the line that needed the least help.

What good looks like

There's no universal figure: Product Revenue is a euro total, so it scales with the size of your store and the breadth of your catalogue. Judge each product against its own trend and the same period last year.

The reading that pays is Product Revenue against Gross Sales on the same row. That ratio is how much of a product's list value you kept, and a slow slide in it is invisible in either number alone.

How to improve it

LeverWhat you doExpectHow longWatch out for
Fast
Stop discounting what sells anyway
Pull the standing markdown off products that clear at full price without itProduct Revenue up on flat units2–4 weeksUnits on those lines usually dip for a few weeks, and the stock you were using the discount to clear now sits longer.
Fast
Fix the stockouts on your top rows
Reorder the products at the top of the table that hit zero, and raise their reorder pointsRevenue returns to its pre-stockout run rate2–4 weeksDeeper cover ties cash up in stock and raises the end-of-season markdown you'll pay to clear it.
Slow
Raise price where the discount did nothing
Test 5–10% on products people buy for fit, brand or refill rather than priceRevenue per unit up1 quarterConversion softens on those product pages first, so units fall before the extra price shows up as profit.
Slow
Send traffic to the products that keep the most
Move ad budget and homepage space onto the lines with the smallest gap to Gross SalesThe revenue mix shifts towards products you keep more of1 quarterYour discount-led products lose volume, and volume is usually what your supplier pricing was built on.

Every lever costs something somewhere. The last column is the one to read twice.

Read it with

Revenue is price times units. Reading it beside the units tells you which of the two moved, and they need opposite responses.

Product Revenue and Quantity, month over month on the Products table
Quantity up
Quantity down
Product Revenue up

Selling more of it

More units and more money. Confirm revenue grew at least as fast as the units did — if it didn't, the extra volume came at a lower price.

Check stock cover before you push it any harder.

Fewer, dearer units

You either raised the price or stopped discounting, and the money went up while the volume went down. Good for margin, risky if it keeps sliding.

Watch units for another month before you raise price again.
Product Revenue down

Busier for less

You sold more items and earned less for them. Almost always markdown, sometimes a mix shift towards the cheapest variant.

Look at the discount column on that row first.

Losing the line

Both halves fell, so this isn't a pricing decision. Something stopped the product selling — start with whether it was buyable all month.

Check stock, then the product page, then a competitor's price.
Product Revenue + Gross SalesGross SalesRevenue before discounts; compare with Product Revenue for markdown cost.

List value against what you kept. Subtract one from the other, per product, and you get the euro cost of discounting that line — the number that shows your bestseller giving away more than the slow stock you meant to clear.

Product Revenue + % Product Discounts% Product DiscountsHow heavily a product is marked down.Under 8% is healthy

Revenue rising with markdown intensity rising means you bought the growth. Revenue rising while the discount share holds or falls means the product earned it. The euro figure alone can't tell those two apart, and they lead to opposite decisions next month.

Common misreads

“My Product Revenue should add up to Total Sales.”

Different lines. Total SalesTotal SalesYour true top line and the anchor for every efficiency metric. adds shipping and takes refunds off; this one is per-product, after product discounts. They were never meant to match.

“The top row is my best product.”

It's the biggest, which isn't the same thing. Scan across to the cost and discount columns on that row — the product carrying your revenue is often the one keeping the least of it.

“Product Revenue is down, so the product is losing demand.”

Price is the other half of the sum. The same units sold at a lower realised price reads exactly like selling fewer units. Check Quantity before you conclude anything about demand.

Also called

Net product revenue · product sales after discounts · realised product revenue

See yoursProduct Revenue for the period, and per product on the Products table next to Gross Sales, Discounts and Quantity.

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