Order profitability

Order profitability assesses the result of a defined order. An operational model deducts relevant item and order costs, such as packaging, delivery and payment processing, from net order proceeds. State whether shared expenses are allocated: contribution before overhead is not fully loaded net profit.[2][1]

Associate discounts, partial returns and adjustments with the same order and specify the observation point. An order may look attractive at dispatch but contribute less after a return. Avoid counting costs twice when already included in item cost. Use the measure for fulfilment or bundle decisions, not as a substitute for company earnings.