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% Product Revenue

How much of your product revenue one product is responsible for.

60 second readAppears on: Products

What it means

% Product Revenue is one product's share of all Product Revenue in the period, written as a percentage. Product Revenue is Gross Sales minus the discounts applied to that product, and it includes tax — so this column splits what the goods themselves earned, after markdown.

What sits outside it matters as much as what sits inside. Shipping charged at checkout is not product revenue, so these shares split a smaller pot than your Total Sales figure and will never reconcile to it. Because the numerator is taken after discounts, a product's share also falls when you mark it down, even if it sold exactly the same units.

Show the math

Formula and a worked example

% Product Revenue = the product's Product Revenue ÷ Product Revenue across every product × 100.

The product's Product Revenue is its Gross Sales less the discounts applied to it, tax included.

The denominator is that same figure added up across your whole catalogue for the period.

Worked example. Your catalogue earns €500,000 of Product Revenue in the quarter. One product earns €75,000, so it reads 75,000 ÷ 500,000 = 15%.

Next quarter that product holds at €75,000 while the catalogue slips to €440,000. It now reads 17% — a rise produced entirely by everything else falling.

Markdown moves it too. Run that product at 20% off and the same units earn €60,000 instead of €75,000. With the rest of the catalogue unchanged at €425,000, it now reads 60,000 ÷ 485,000 = 12.4% having sold exactly as much as before. Read % Product Discounts% Product DiscountsHow heavily a product is marked down.Under 8% is healthy in the same row before you conclude a product is fading.

It answers the question

Which products are actually carrying the shop, and how badly would it hurt to lose one of them? A sorted share turns a catalogue of hundreds into a list you can read in ten seconds.

Why it matters

It sizes your exposure. A single product at 40% of revenue means a supplier delay, a price change or a stock-out on one item takes almost half your income with it. That is a stock and cash-flow decision long before it is a marketing one.

It also directs where effort goes. Photography, ad budget, packaging and reorder cash all cost the same whichever product you spend them on, and this column is the fastest way to see which products are worth that spend and which are quietly using up shelf space.

What good looks like

There are no published bands here, because the right concentration depends on how many products you sell. Fifty products sharing revenue evenly would sit near 2% each, so read a row against that even split, then against the same product last quarter.

The more useful test is a three-column one. Read a product's share of revenue against its share of units and its % COGS% COGSLower % generally means better product margins.. A product at 25% of revenue, 8% of units and a high COGS share is a big, thin, hard-to-replace line — very different from one earning the same share on a light cost base.

How to improve it

LeverWhat you doExpectHow longWatch out for
Fast
Put the product where people look
Move it into your homepage, collection tops and ad creativeIts share rises within a fortnight1–2 weeksPlacement is finite. Every product you promote pushes another one down, so the shares of the rest fall without those products selling any worse.
Fast
Stop discounting the winner
Take the standing markdown off a product that already sells at full priceShare and margin both rise on the same unitsSame monthSome of the volume was the discount. Units usually dip before the higher price makes up the difference, so watch % Quantity for a month before judging it.
Slow
Widen the range around it
Add sizes, colours or a larger pack of a product that already sellsThe line grows without new demand having to be found1 quarterEvery variant is stock and cash. Variants also cannibalise each other, so the family can grow while the original product's own share falls.
Slow
Retire the tail
Delist products that earn little and consume stock, photography and picking timeEverything you kept reads higher1 quarterYou improved the shares by shrinking the denominator, not by selling more. Total revenue usually falls with the tail, so read the money, not the percentage.

Every lever costs something somewhere. The last column is the one to read twice.

Read it with

A share of revenue says what a product earns. It says nothing about what it costs you to earn it, or how much work went into it.

% Product Revenue + % Quantity% QuantityShows how much this product contributes to total volume.

Money share against unit share tells you what kind of product you are looking at. A product at 25% of revenue and 5% of units is a high-price line carried by a small number of buyers, so a handful of lost customers moves it a long way. The reverse — 5% of revenue and 25% of units — is a cheap, high-volume item that dominates your picking, packing and shipping while contributing little of the money.

% Product Revenue + % COGS% COGSLower % generally means better product margins.

Revenue share is not profit share, and only this pair separates them. Two products both at 20% of revenue are not the same asset if one runs at 30% COGS and the other at 65%. Sort by revenue share to find your biggest lines, then read the cost column before you decide which one to reorder.

Common misreads

“This product is 30% of revenue, so it's 30% of the profit.”

Only if every product carries the same cost and the same markdown, which is never true. A product with a heavy COGS share and a standing discount can be your biggest revenue line and one of your smallest profit ones.

“These percentages should add up to my Total Sales.”

They cannot. Product Revenue counts what the goods earned; Total Sales also carries the shipping your customers paid at checkout. The shares here split the product pot only, and they add to 100% of that pot rather than of the store.

“This product's share dropped, so it's selling worse.”

Three things move this number: the product sold less, another product sold more, or you discounted this one. Check the Quantity column and the discount column in the same row before you decide which.

Also called

Revenue share · share of product revenue · revenue contribution by product

See yoursEvery product's share of revenue, sorted, with its units, markdown and cost in the same row.

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