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← KPI Glossary
Retail & Ecommerce

Gross Margin

Revenue minus cost of goods sold as a percentage of revenue. The fundamental profitability metric before operating expenses.

What is Gross Margin?

Gross Margin is defined as: Revenue minus cost of goods sold as a percentage of revenue. The fundamental profitability metric before operating expenses.

What data source is used to measure Gross Margin?

Gross Margin is typically measured using data from a Accounting / ERP. This system of record provides the transactional and operational data required to calculate and monitor this metric accurately and in real time.

Typical Data SourceAccounting / ERP

Which industries track Gross Margin?

Gross Margin is a key performance indicator used across the following sectors:

  • ›Retail & Ecommerce

How does Firehawk Analytics measure Gross Margin?

Firehawk Analytics connects directly to your Accounting / ERP and delivers a live Gross Margin dashboard. Configuration is completed within 48 hours — no data analyst required on your team.

More metrics from Retail & Ecommerce

View all →

Revenue per Square Metre

Total sales divided by retail floor area. The classic physical retail productivity metric — indicates store layout and merchandising effectiveness.

Retail & Ecommerce
POS / Property DataView →

Conversion Rate

Percentage of visitors (foot traffic or website sessions) who complete a purchase. The single most impactful metric for revenue growth without increasing traffic.

Retail & Ecommerce
POS / Web AnalyticsView →

Average Order Value

Mean dollar value per transaction. Increasing AOV through upselling and bundling is often cheaper than acquiring new customers.

Retail & Ecommerce
POS / Ecommerce PlatformView →

Track Gross Margin in your business

In 48 hours, you'll have a live Gross Margin dashboard connected to your Accounting / ERP.

Browse all KPI definitions →