Calculate Profit

Whether you're a starting entrepreneur or have been selling on bol.com for years - calculating profit is one of the most important skills you need to master as a seller. Without insight into your profitability, you can't make good decisions about purchasing, pricing, or growth. In this article, we'll explain step by step how to calculate your profit, which formulas you need, and how to optimize your margins.

What does calculating profit mean exactly?

Profit is the amount left over after you've deducted all costs from your revenue. It sounds simple, but in practice, there are different types of profit and many cost items that sellers overlook. To calculate your profit correctly, you need to distinguish between gross profit, net profit, and profit margin. Each of these concepts gives you a different perspective on the health of your business.

The basic formula: calculating profit in three steps

The most fundamental formula to calculate profit is:

Profit = Revenue (excluding VAT) − Total costs

Let's break this down into three concrete steps:

Step 1: Calculate your revenue excluding VAT

If your selling price including VAT is, for example, €24.95 and the VAT rate is 21%, you calculate your revenue excluding VAT as follows:

Revenue excl. VAT = €24.95 / 1.21 = €20.62

Step 2: Add up all your costs

This includes not only the purchase costs but also shipping costs, platform commission, packaging costs, and other business costs. For a bol.com seller, this might look like this:

Cost item	Amount per piece	Explanation
Purchase price	€6.00	Purchase costs from supplier
Bol.com commission	€3.09	Average 15% of selling price excl. VAT
Shipping costs	€3.50	LvB or own shipping
Packaging costs	€0.50	Box, filling material, tape
Return costs (average)	€0.75	Estimated based on return percentage
Other costs	€0.50	Advertisements, storage, software
Total costs	€14.34

Step 3: Subtract costs from revenue

Profit = €20.62 − €14.34 = €6.28 per piece

If you sell 100 pieces per month, your monthly profit on this product is €628. This way, you can quickly see if a product is profitable and how much you need to sell to achieve your goals.

Gross profit vs. net profit: the difference explained

When calculating profit, you come across two important concepts: gross profit and net profit. The difference is essential for a correct financial picture.

Gross profit

Gross profit is your revenue minus only the direct costs (also known as the cost price or COGS - Cost of Goods Sold). This includes the purchase price and any direct production costs, but not your overhead costs such as rent, software, or salaries.

Gross profit = Revenue excl. VAT − Purchase costs

In our example: €20.62 − €6.00 = €14.62 gross profit

Net profit

Net profit is what's left after you've deducted all costs - including commission, shipping, advertising, software subscriptions, and taxes. This is your actual profit.

Net profit = Revenue excl. VAT − All costs

In our example: €20.62 − €14.34 = €6.28 net profit

Calculating profit margin: percentages that matter

Besides the absolute profit amount, the profit margin as a percentage is just as important. It gives you a normalized view of your profitability, allowing you to compare products.

Gross Profit Margin

Gross Profit Margin = (Gross Profit / Revenue excl. VAT) × 100%

In our example: (€14.62 / €20.62) × 100% = 70.9%

Net Profit Margin

Net Profit Margin = (Net Profit / Revenue excl. VAT) × 100%

In our example: (€6.28 / €20.62) × 100% = 30.5%

A net profit margin of 25–40% is generally considered healthy for bol.com sellers. Products with less than 15% net margin are risky, as unexpected costs (returns, price drops) can quickly erase your profit.

Profit Margin	Assessment	Advice
< 15%	Risky	Reconsider pricing or supplier
15–25%	Acceptable	Look for optimization opportunities
25–40%	Healthy	Good return, focus on scaling
> 40%	Excellent	Strong position, protect your niche

What costs should you include when calculating profit on bol.com?

Many sellers underestimate the number of cost factors that affect their profit. Here is a comprehensive overview of the costs you should include to calculate your profit correctly:

Direct Costs

• Purchase Price - The amount you pay to your supplier, including any import costs and duties
• Shipping Costs to Customer - Whether you work with LvB (Logistics via bol) or your own shipping
• Packaging Materials - Boxes, filling materials, tape, stickers, and any branded packaging

Platform Costs

• Bol.com Commission - Varies per category from 5% to 17% of the selling price excluding VAT. Check our guide to bol.com commission for the full overview
• LvB Costs - Storage costs, handling costs, and shipping costs if you use Logistics via bol
• Advertising Costs - Budget for Sponsored Products or other advertising forms

Indirect Costs

• Returns - Average return percentage of 5–15%; calculate the costs per return (shipping + potential value reduction)
• Software and Tools - Subscriptions for tools like Boloo for product research and sales analysis
• Taxes - Income tax or corporate tax on your profit
• Storage Costs - Costs for your own storage or a fulfillment partner

Practical Example: Calculating Profit for a bol.com Product

Let's go through a complete example. Suppose you sell a kitchen product via bol.com:

Given	Value
Selling price (incl. VAT)	€34,95
VAT rate	21%
Revenue excl. VAT	€28,88
Purchase price	€8,50
Bol.com commission (12%)	€3,47
Shipping costs (LvB)	€4,20
Packaging	€0,60
Advertising costs (per piece)	€1,50
Return costs (average)	€0,90
Total costs	€19,17
Net profit per piece	€9,71
Net profit margin	33,6%

With a net profit margin of 33.6%, this product is in the healthy zone. With 200 sales per month, this generates €1,942 in net profit. Use the Boloo Sales Dashboard to monitor your actual sales and profit per product in real-time.

5 tips to increase your profit as a bol.com seller

Now that you know how to calculate your profit, here are five concrete tips to improve your profitability:

1. Negotiate better purchase prices - Order larger volumes from your supplier or compare multiple suppliers to get the best price. Every euro saved on purchasing is direct profit.
2. Optimize your shipping costs - Compare your own shipping with LvB. Sometimes one option is more advantageous than the other, depending on the product size and weight.
3. Reduce your return percentage - Invest in clear product descriptions, good photos, and reliable packaging. Fewer returns mean more direct profit.
4. Monitor your advertising expenses - Keep an eye on your ACoS (Advertising Cost of Sale) and pause campaigns that are not profitable.
5. Use data for pricing - Analyze competitors and market trends with tools like the Product Tracker to determine the optimal selling price.

Common mistakes when calculating profit

Finally, the most common mistakes sellers make when calculating their profit:

• Counting VAT as profit - The VAT you receive is not revenue. Always calculate with amounts excluding VAT.
• Forgetting return costs - Every return costs you money (shipping, handling, possible value reduction). Calculate an average return percentage into your cost price.
• Only looking at gross profit - A high gross margin says nothing if your net profit is low due to high overhead costs.
• Not spreading one-time costs - Costs for product development, photography, or certification should be spread over the expected sales volume.
• Ignoring seasonal effects - Your profit margin can vary greatly per season due to changing shipping costs, return percentages, and competition.

Conclusion: calculating profit as the foundation for growth

Correctly calculating your profit is the basis of every successful sales strategy. By regularly analyzing your gross profit, net profit, and profit margin, you can make targeted decisions about purchasing, pricing, and cost optimization. Use tools like the Boloo Sales Dashboard to track your profitability per product in real-time and discover where you have the most room for improvement. The better you have a grip on your figures, the faster you can grow as an online seller.