Marketplace sales are up — so where is the profit?

You see marketplace turnover; you do not see commission, shipping and return deductions until the settlement file arrives. That is where profit disappears.

Kumpara · · 6 min read

At month end the marketplace dashboard shows a healthy turnover. What lands in your bank account is always smaller. Waving the gap away as "commission" means never knowing which product actually earns.

At least four items pull a marketplace order down: sales commission, shipping, service and transaction fees, and returns. None of them are known when the order arrives — they come with the settlement file, often weeks later.

So there are two different profit figures, and they need to be kept apart:

Estimated profit, calculated when the order lands: sale amount minus product cost minus the channel's known commission rate. Fast, good enough for pricing decisions, not exact.

Actual profit, calculated after the settlement file arrives: real deductions, returns and any penalty lines included. This is what you update your price list against.

In Kumpara the order and the settlement meet in one place. Channel orders collect in one list, and nothing is invoiced and no stock moves until you approve. When you upload the settlement file, commission and shipping deductions are matched per order, and the profit report shows actual profit next to the estimate. The net amount that reached your bank is matched to that settlement in bank reconciliation — so "what did the marketplace pay, and for which orders" always has an answer.

The practical effect: you stop watching the turnover chart and start watching the actual-profit column per product. Most sellers discover two things there — some best sellers earn nothing, and some slow movers earn more than expected.