Gross Margin vs Gross Profit: Formulas & Ecommerce Examples [2026]

Gross margin and gross profit are not the same thing. Gross profit is the dollar amount left after subtracting cost of goods sold (COGS) from revenue. Gross margin expresses that same figure as a percentage. Confusing them leads to pricing mistakes that cost ecommerce sellers thousands — especially when selling across multiple marketplaces with different fee structures.