Overview
Profit metrics tell you how much money you are actually keeping after all costs, fees, and expenses are accounted for. Dashboardly calculates three levels of profit -- Gross, Operating, and Net -- each giving you a progressively more complete picture of your TikTok Shop's financial health.
Metrics
Gross Profit
- What it shows: How much you earn after subtracting the cost of the products you sold, but before any other expenses (fees, commissions, shipping costs, etc.).
- Formula: Net Sales - COGS
- Where you see it: Dashboard, Profit & Loss, Sales & Profit, Product Details
- Example: You sell $5,000 worth of products (Net Sales) and those products cost you $2,000 to purchase (COGS). Your Gross Profit is $3,000. This means you have $3,000 to cover all your other expenses (fees, shipping, marketing, etc.).
- Important notes:
- If Gross Profit equals Net Sales, you likely have not set your product costs. See Setting Up COGS.
- Net Sales is defined as Product Sales + Shipping Revenue - Discounts (see Revenue Metrics).
- COGS includes the cost of cancelled orders that were shipped but not returned, because the product left your inventory.
Operating Profit
- What it shows: Your profit after all day-to-day operating expenses are deducted -- fees, shipping costs, affiliate commissions, refunds, sample costs, and manual adjustments.
- Formula: Gross Profit + Manual Income - Shipping Costs - FBT Fees - Platform Fees & Taxes - Co-funded Promotion Fee - Affiliate Sales Commission - Affiliate Ads Commission - Sample/Marketing Costs - Refunds & Returns - Manual Expenses - FBS Manual Shipping
- Where you see it: Dashboard, Profit & Loss, Sales & Profit
- Example: Your Gross Profit is $3,000. You have $200 in shipping costs, $400 in platform fees, $150 in affiliate commissions, $100 in refunds, and $50 in sample costs. Your Operating Profit is $3,000 - $200 - $400 - $150 - $100 - $50 = $2,100.
- Important notes:
- All expense items are subtracted from Gross Profit. If Operating Profit is negative, your operating costs exceed your gross margin.
- This is the core measure of whether your shop's operations are profitable before external factors like TikTok subsidies or ad spend.
- The detailed breakdown of every expense is visible on the Profit & Loss page.
Net Profit
- What it shows: Your final bottom-line profit after everything -- including TikTok's platform subsidies and your advertising spend.
- Formula: Operating Profit + Platform Subsidy - Ad Spend
- Where you see it: Dashboard, Profit & Loss, Sales & Profit
- Example: Your Operating Profit is $2,100, TikTok contributed $300 in Platform Subsidy from co-funded promotions, and you spent $500 on TikTok Ads. Your Net Profit is $2,100 + $300 - $500 = $1,900.