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      What is Channel-Level Profitability?

      Channel-Level Profitability is a reporting feature that shows actual net profit by marketplace channel, not just top-line sales or revenue.

      Channel-Level Profitability is a reporting feature that shows actual net profit by marketplace channel (e.g., Amazon, eBay, Walmart), not just top-line sales or revenue. It factors in all relevant costs—including advertising, fees, cost of goods sold (COGS), shipping, and other expenses—so users can see the true contribution margin from each marketplace.

      What does it include?

      This report includes:

      • Net Revenue: Sales minus refunds, discounts, promotions, and other income adjustments

      • Total Expenses: A breakdown of key cost categories including:

        • Advertising

        • Selling fees

        • Fulfillment & shipping

        • Refund-related costs

        • Cost of goods sold (COGS)

        • Other variable expenses

      • Profit: Net revenue minus total expenses

      • Profit %: Profit as a percentage of net revenue

      • TACoS %: Total advertising cost of sale relative to revenue

      • Estimated Payout: Approximate seller payout after deductions

      Why is this important?

      This feature gives a clear, channel-by-channel view of where you’re making or losing money. Sellers often focus on revenue, but revenue without margin visibility can be misleading. Channel-Level Profitability allows you to:

      • Identify your most profitable marketplaces

      • Detect where high costs are eating into profit

      • Justify strategic shifts (e.g., divesting from low-margin platforms or doubling down where ROI is strong)

      • Support QBRs, investment decisions, and channel prioritisation

      When should I use this?

      • Monthly or weekly performance reviews

      • Strategic planning or resource reallocation

      • When onboarding new marketplaces

      • To back up pricing, discount, or advertising decisions

      • In agency-client meetings or internal presentations

      Where is this found in the platform?

      1. Log into MerchantSpring

      Log into MerchantSpring

      2. Click on My Channels

      Click on My Channels
       

      3. Scroll down the Profitability section and click on Channel profit

      Scroll down the Profitability section and click on Channel profit
       

      4. You will then see all reports relating to Channel profit**

      You will then see all reports relating to Channel profit


      **Tip: Use the date range selectors and currency toggle to customize your view. You can compare current vs. prior periods side-by-side.