Revenue, Margin, Profit, and Cash Received

Revenue, contribution margin, operating profit, and cash received answer four different questions. A useful seller dashboard should label each figure and show the inputs behind it.

One example with four answers

Assume an illustrative order has net sale revenue of ₹1,000. Product cost is ₹400; marketplace charges ₹150; shipping ₹80; attributed advertising ₹50. Contribution margin is ₹320 after those attributable costs.

If ₹100 of operating overhead is allocated to that order using a documented method, the illustrative operating profit becomes ₹220. This is not a tax calculation. If Amazon transfers funds in a later settlement, the bank cash receipt may be zero in the sale week and a different amount in the payout week because the transfer aggregates many transactions.

Use each metric for its own decision

• Revenue: How much did the sale earn before the specified costs?
• Contribution margin: Does the order cover costs attributable to selling it?
• Operating profit: What remains after the overhead allocation used in the business accounts?
• Cash received: How much money was transferred in the relevant payout period?

Tax, returns, reimbursements, financing, and inventory timing can change the picture. If an input is estimated or missing, label it. Do not call an incomplete contribution margin “real profit.”

Sources and scope

Reviewed 23 September 2026. See Amazon India seller fee guidance for actual marketplace charges. All figures above are invented to explain the calculation.