eMAG marketplace fees and real margin: what costs to include

Selling price minus purchase price does not tell you everything you earn from an eMAG order. Commission and other selling costs still need to be covered. Money arriving in your bank account is not automatically profit.

What does an order margin mean?

For a simple analysis, an order margin is the amount left from sales revenue after the product cost and the direct costs of that order. This amount still needs to help cover the general expenses of the business. A positive order margin alone does not prove the business is profitable.

Which costs should you check?

Start with the commission applicable to the product category. Depending on your arrangement, add delivery paid by the business, packaging, logistics services, advertising and discounts. Returns can create additional costs, particularly if an item cannot be resold in its original condition.

Conditions vary with the contract, product and services used. Check current figures in your seller account, contract and supporting documents. Do not base the calculation on a percentage from an old article.

A simplified example

Hypothetical example, using comparable amounts without detailing VAT: sales revenue is 100 lei, the product costs 60 lei and commission plus other direct costs total 20 lei. That leaves 20 lei before overheads and applicable taxes. A further 15-lei discount leaves 5 lei, assuming the other costs stay unchanged.

In a real calculation, compare revenue and costs on the same basis. VAT treatment depends on the circumstances of the business and should be checked with its accountant. VAT should not automatically be treated as a cost in every case.

How do you choose products for a promotion?

Calculate what remains for each product after the discount and relevant costs. Some products can support a promotion; others cannot. More orders do not help if you sell at a loss or returns absorb the earnings.

Check the documents before automating

First compare a few orders with invoices, deductions and payments received. Explain discrepancies before automating the report. An incorrect calculation remains incorrect even when the reporting is automatic and looks professional.

Explore e-commerce operations and business data analysis to connect orders with costs and receipts.