For example, an item costing $8 and resold for $10 creates a $2 gross spread. Payment fees, currency conversion, refunds, support costs and tax may reduce the amount actually retained. Resellers should calculate profitability using the price charged by their own storefront and their current Distribution Hub level price.
Key facts
- Gross margin is not net profit
- Reseller level and item affect acquisition cost
- Currency conversion can change effective cost