Overview
Net profit is what a business actually keeps after every cost is subtracted from revenue: product cost, platform fees, affiliate commission, ad spend, fulfillment, and fixed overhead like staff and software.
It is the bottom line. On TikTok Shop, it is also the number most easily lost behind a big GMV figure.
How it works
Net profit equals total revenue minus all costs, variable and fixed. A shop with $100,000 in GMV might net only a fraction of it once commission, fees, ads, and overhead are paid.
Why it matters
GMV measures size; net profit measures whether the business works. A program optimized for GMV alone can grow itself broke. Tracking net profit keeps growth honest.
How brands use it
Brands work backward from a target net profit to set commission, ad budgets, and pricing, ensuring that scaling GMV also scales what they keep.
