How to calculate profit per order after marketplace fees, advertising and returns

The formula: contribution per order

Contribution = actual receipts from a completed order minus product cost, marketplace and payment fees, shipping subsidies, packaging, allocated advertising, a returns-cost allowance and other variable costs. If the listed price is VND 350,000 but the customer pays VND 300,000 after a shop-funded discount, use VND 300,000, not VND 350,000.

Define the scope clearly: one product, one order or an average order within a group. For multi-product orders, order-level costs such as packaging and shipping are deducted only once. Taxes and fixed costs should be assessed at the appropriate accounting level; avoid calling this result net profit.

A calculator comparing two scenarios

Enter average amounts for a completed order in the current and proposed scenarios. Initial values are hypothetical examples; replace them with shop data. Marketplace fees in the tool are not defaults for any particular platform or date.

The returns allowance covers shipping, handling, damage or unrecoverable goods, allocated per completed order. If actual receipts already exclude returned orders, do not deduct their entire revenue again in this field.

An example with VND 300,000 collected: how much remains?

A hypothetical order collects VND 300,000. Product cost is VND 150,000, marketplace and payment fees VND 20,000, shipping subsidy VND 10,000, packaging VND 5,000, allocated advertising VND 60,000 and returns allowance VND 5,000. Total variable costs are VND 250,000, leaving VND 50,000 in contribution.

If the shop discounts a further VND 30,000 without changing other costs, contribution falls to VND 20,000. If advertising also rises by VND 25,000 per order, contribution becomes negative VND 5,000. Each change should be considered alongside other changes, rather than examining the discount percentage alone.

Costs easily overlooked

Payment fees, product-category platform fees, shop-funded vouchers, return shipping, packaging, gifts, canceled-order handling and collaborator commissions are often scattered across reports. Do not double count amounts already included in other fees.

After calculating contribution, total it across all orders in the period and subtract fixed costs such as salaries, rent, tools, depreciation and administration. Cash flow also requires examining when money arrives and when suppliers must be paid.

Use the result to make decisions

Scenario B’s higher contribution per order does not necessarily produce more money if order volume falls sharply. Compare expected total contribution by volume, then consider inventory limits, service capacity and returning-customer rates.

Once you have per-order results, place them in a weekly table. The following eight-week scenario shows how a shop can grow revenue while profit after fixed costs declines.

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