How to Calculate Product Margin on Ozon and What It Shows

Product margin on Ozon is calculated as the share of gross profit in gross revenue.

In the Torgstat service, we use the following formula:

Margin = Gross profit × 100% / Gross revenue

What product margin on Ozon means in simple terms

Product margin on Ozon is a percentage that shows what portion of a product's revenue you retain as gross profit.
This metric allows you to quickly assess how profitable it is to sell a specific SKU, regardless of its price and turnover.

Margin is convenient because it:

normalizes the result into percentages;

allows you to compare products with different prices;

helps you see where money is being earned more efficiently.

Example with two products with the same gross profit of 20,000 ₽:

Product A: revenue 50,000 ₽
Margin:
20,000 × 100% / 50,000 = 40%

Product B: revenue 100,000 ₽
Margin:
20,000 × 100% / 100,000 = 20%

In monetary terms, both products generate the same gross profit of 20,000 ₽.
But in terms of sales efficiency, Product A is more profitable: from every ruble of revenue, it retains more profit.

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Product margin formula on Ozon

There is one basic formula:

Margin = Gross profit × 100% / Gross revenue

For the calculation to be correct, it is important to:

Understand exactly what you call gross revenue.

Clearly define the composition of gross profit.

Take metrics for the same period.

What is gross revenue

Gross revenue is the total amount of sales of a specific product over a selected period of time.
This is all the money that buyers paid for the product (without breaking it down into expenses and profit) for the specified period.

Key point:
if you calculate margin for a month, and your gross profit is also for a month, then you need to take gross revenue for that same month. Mixing, for example, weekly revenue and monthly profit is not allowed — the result will be distorted.

What is gross profit

Gross profit is the financial result after deducting from revenue the portion of expenses that you attribute to this accounting level.

How exactly gross profit is formed depends on your management model. It may include:

purchase or production cost price;

marketplace commissions;

logistics to the customer and back;

part of marketing costs, etc.

The main thing is to use the same methodology for calculating gross profit when you:

compare different products;

analyze the same product in different periods.

It is the amount of gross profit that goes into the numerator of the margin formula.

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Example of calculating product margin on Ozon

The margin of a specific product is calculated by substituting two numbers into the formula: gross revenue and gross profit for the period.

Example 1

For a month, the product generated:

gross revenue — 300,000 ₽;

gross profit — 72,000 ₽.

Calculation:

72,000 × 100% / 300,000 = 24%

Product margin is 24%.
This means: out of every 100 ₽ of revenue for this product, 24 ₽ is gross profit.

Example 2

For the same month, another SKU:

gross revenue — 500,000 ₽;

gross profit — 50,000 ₽.

Margin:

50,000 × 100% / 500,000 = 10%

Here, revenue is higher than for the first product (500,000 ₽ vs. 300,000 ₽), but the margin is more than two times lower (10% vs. 24%).
If you focus only on revenue, you might mistakenly consider the second product more successful, even though in terms of efficiency it is weaker.

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Why an Ozon seller should calculate product margins

Margin is needed to see not just "how much you sold" but also "how profitably you sold."
The metric helps eliminate emotional decisions and rely on numbers.

Using margin, you can:

compare products against each other by efficiency;

identify weak positions with a low profit percentage;

assess the impact of price changes on product economics;

track whether SKU economics are improving or worsening;

make informed decisions on promotions, discounts, and campaigns;

analyze dynamics by period (month over month, year over year).

Margin provides the most value when combined with gross profit.
Example:

Product 1: margin 50%, gross profit 5,000 ₽ per month.

Product 2: margin 25%, gross profit 100,000 ₽ per month.

By percentage, Product 1 looks "better," but it is Product 2 that brings the main financial result to the business. Therefore, the margin percentage should not be considered separately from the profit amount.

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How margin differs from gross profit

The difference between margin and gross profit is in the form of presenting the result.

Gross profit shows the absolute amount of money earned (in rubles).

Margin shows what share of revenue this profit represents (as a percentage).

Example:

gross profit — 50,000 ₽;

gross revenue — 200,000 ₽.

Margin:

50,000 × 100% / 200,000 = 25%

As a result, for the same product you get two metrics:

gross profit: 50,000 ₽;

margin: 25%.

For product analysis, it is more convenient to use both:

gross profit answers the question: "How much money did I earn in rubles?";

margin answers the question: "How efficiently is revenue converted into profit?".

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Margin and markup: what's the difference

Margin and markup are two different calculated metrics, even though both are related to profit in meaning.

The key difference:

margin is calculated from revenue;

markup is calculated from cost price.

Margin formula:

Margin = Gross profit × 100% / Gross revenue

Markup formula in general form:

Markup = Gross profit × 100% / Cost price

Example:

A product is purchased for 1,000 ₽ and sold for 1,500 ₽. For simplicity, let's assume gross profit is 500 ₽.

Markup:

500 × 100% / 1,000 = 50%

Margin:

500 × 100% / 1,500 ≈ 33.3%

The same profit amount (500 ₽) gives different percentages depending on the calculation base:

50% — markup on cost price;

33.3% — margin on revenue.

Therefore, you cannot directly assume that a 50% markup means a 50% margin.

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What margin on Ozon is considered good

There is no universal "normal" margin level for all sellers and categories.
The optimal value depends on a combination of factors:

product category;

purchase or production cost price;

retail price;

selling expenses (commissions, logistics, etc.);

order volume;

inventory turnover rate;

level of competition;

advertising budgets;

share and cost of returns;

the overall business model.

Therefore, it is more appropriate to:

compare margins of products within your own assortment;

track the dynamics of each SKU over time.

Example of interpreting dynamics:

previously, product margin was 28%;

after two months, it became 16%.

Such a decline is a reason to investigate what changed: costs increased, price decreased, discounts increased, logistics or advertising became more expensive, etc.

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Why product margin on Ozon may decline

Margin falls when gross profit shrinks relative to revenue.
The reason is not in the formula itself, but in changes to its components: price, expenses, and volumes.

Common reasons for margin decline:

increase in purchase or production cost price;

decrease in actual selling price (promotions, discounts, price reductions);

increase in marketplace commissions or other expenses;

higher logistics and storage costs;

growth in advertising costs;

additional discounts and coupons;

increase in the share of returns;

changes in internal terms of working with the product.

An illustrative example with stable revenue.

Before:

gross revenue — 400,000 ₽;

gross profit — 100,000 ₽;

margin — 25%.

After:

gross revenue — 400,000 ₽;

gross profit — 60,000 ₽;

margin — 15%.

Revenue did not change, but profit decreased, and with it — the margin.
If you look only at revenue, it is easy to overlook such a "dip," even though the product's economics have already deteriorated.

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How to analyze product margins on Ozon

Margin by itself provides a limited picture.
It should be considered together with other financial and operational metrics.

The minimum set for SKU analysis:

Gross revenue — shows the scale of sales (turnover).

Gross profit — shows how much money the product brings in rubles.

Margin — shows how efficiently revenue is converted into profit.

Dynamics of these metrics by period — allows you to understand whether the product's economics are improving or worsening.

Additionally, it is useful to consider:

number of units sold;

turnover and remaining stock;

advertising costs;

share and volume of returns;

impact of discounts and promotions.

Example of interpretation:
if margin has decreased slightly, but the following have grown sharply:

revenue;

gross profit in rubles,

then the product may still be profitable for the business. In this case, the decrease in percentage is a deliberate trade of "percentage efficiency" for greater overall earnings.

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How to monitor product margins on Ozon in Torgstat

With a large assortment, manually calculating margin for each SKU and comparing across periods quickly becomes a labor-intensive task.

In Torgstat, Ozon product margins are calculated automatically using the formula:

Margin = Gross profit × 100% / Gross revenue

The capabilities of this approach:

margin assessment for individual products;

comparison of the same SKU across different periods;

identification of products that maintain high revenue but lose margin;

quick search for changes in product economics and their causes.

It is most useful to look at:

margin — as percentage efficiency;

gross profit — as the actual financial result in rubles.

This combination shows both the "quality" and "scale" of earnings from a product.

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How to increase product margin on Ozon

You can increase margin either by increasing gross profit, or by reducing expenses, or by adjusting the price so that profit as a percentage grows.
Before taking action, it is important to understand exactly what caused the change in gross profit.

Possible steps:

reconsider the product price (carefully test a price increase);

reduce purchase or production cost price;

optimize logistics (choice of warehouses, delivery schemes, packaging);

evaluate the effectiveness of ad campaigns and remove unprofitable ones;

reduce discounts and promotions that do not deliver the needed sales growth;

reduce packaging costs without losing quality;

identify causes of returns and reduce their share;

change the terms of working with a specific SKU or supplier.

Any changes are best analyzed not only by margin, but also by gross profit and revenue.

Example of a possible effect:

a price increase raises the margin;

but a simultaneous drop in the number of orders may reduce overall gross profit.

The goal is not just to get a nice percentage, but to ensure the greatest sustainable financial result.

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Frequently asked questions

How to calculate product margin on Ozon?

Margin is calculated using the formula:
Margin = Gross profit × 100% / Gross revenue.
For example, with gross profit of 30,000 ₽ and gross revenue of 120,000 ₽:
30,000 × 100% / 120,000 = 25% — margin is 25%.

What does product margin show?

Margin shows what share of gross revenue is gross profit for the product. The higher the value, all else being equal, the more efficiently the product earns profit from each unit of revenue.

Can margin be negative?

Yes, if gross profit is negative (expenses included in its composition exceeded revenue), then the margin will also be below zero. This is a signal for a detailed analysis of the product's economics.

Which is more important for analysis — margin or gross profit?

Neither metric replaces the other. Margin shows efficiency as a percentage, while gross profit shows the result in rubles. For decision-making, they should be used together.