Branding glossary.

A guide to jargon and buzzwords used in branding and ecommerce.
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Allowance
Price reduction or rebate offered to incent a customer to keep a product rather than return it.
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Distribution
Corporations distribute profits by paying shareholder dividends. Small businesses allow owners to take a draw.
Drop-shipping
A business model in which a seller partners with suppliers, who hold and ship the inventory. Many Amazon sellers (but not all) use drop-shipping.
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Gross sales
The value of all paid and unpaid invoices for products and services. Total revenues are paid sales.
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Net income
This is your bottom line, or profit. It is net sales (net revenue) minus expenses, taxes, and any other business gains or losses.
Net sales
Total revenue (gross revenue) less the cost of returns, allowances, and discounts. This is the top line on your income statement.
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Profit margin
Gross profit margin is a product's retail sales price minus its wholesale cost. Net profit margin is retail sales price less all expenses.
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Revenue
The total money earned from product sales. This is your company's income.
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