What is Gross Revenue?

Gross Revenue at the order level represents the total amount that can be collected from customers for a specific order before subtracting any expenses like discounts, returns, or allowances.



Example:
An Indian e-commerce company sells a smartphone for ₹15,000. The gross revenue from this sale is ₹15,000. This is the amount before considering any discounts offered, returns processed, or other sales adjustments.



Significance:
Gross revenue serves as the foundational figure in understanding the economics of each order. It indicates the potential inflow of money into the business from a particular transaction.

Analyzing gross revenue is crucial to gauge customer price acceptance and to set a baseline for further financial analysis, such as net revenue, cost considerations, and overall profitability at the order level.

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