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Revenue

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Revenue is the actual income from a website, after accounting for various deductions.

What is Revenue ?

Revenue is the income a website gets to keep, after accounting for various deductions.The deductions include refunds, discounts, transaction fees. Revenue may also include revenue from subscriptions, advertising, affiliate marketing, or other website-related activities.

Revenue is typically lower than GMV (Gross Merchandise Value) because it accounts for refunds and certain costs.

Author
Published
December 19, 2022
Updated
November 8, 2024

Frequently Asked Questions

Revenue is usually recognized when the product is delivered or the service is provided, not necessarily at the moment of purchase.

No, revenue is not the same as GMV. Revenue measures the income that an e-commerce business generates from the sale of its own products or services, while GMV measures the total value of all goods sold through a platform or marketplace.

Basically, net profit can be higher than revenue when an online business's income through non-core operations, such as the sale of investments, temporarily exceeds operating costs.

As you know, revenue refers to money generated through business operations, while profit describes net income after deducting all expenses from earnings.