tl;dr
Your always up-to-date P&L statement — from GMV down to EBITDA. Klar uses your configured cost structure to build a live Profit & Loss view you can use to track how your margin structure and overall profitability develop over time
Deep-dives available for discounts, returns, logistics, marketing costs, and overhead
Prerequisite: configure your COGS, Logistics Costs, Transaction Costs, and Marketing Channels to get the most complete picture
This report is not a replacement for your accounting P&L — but the goal is 98% accuracy so you can reliably use it to improve profitability
What can I analyse?
The report has two sections: an Overview showing your four core margin metrics, and a detailed Profit & Loss statement with every line item from GMV to EBITDA.
Overview
The Profit & Loss overview focuses on your five core profitability metrics:
Net Revenue = Gross Revenue − Returns − Taxes
CM1 = Net Revenue − COGS
CM2 = CM1 − Logistics Costs − Transaction Costs
CM3 = CM2 − Marketing Costs → your profit after all variable costs
EBITDA = CM3 − Overhead Costs
They are shown as a total for the selected period and as a weekly graph, so you can see how your margins develop over time and spot trends early.
Profit & Loss
Time frame
Use the time frame toggle to break down your P&L by:
Total (single combined view for the selected period)
Week
Month
Quarter
Many line items show an "as % of..." value below them — this expresses each metric as a percentage of the previous subtotal, making it easy to track margin improvements over time.
P&L line items
Revenue waterfall:
Gross Merchandise Value (GMV) = the original selling price of all items before any deductions & discounts
Price Reductions = total value of Compare-At price reductions (formerly "Price Reductions Value")
Price Reduction % of GMV = Price Reductions / GMV
Discount Codes = total reduction through discount/voucher codes and cart rules (formerly "Discount Code Value")
Discount Code % of GMV = Discount Codes / GMV
Shipping Revenue = revenue from shipping charges, excl. discounts
Gross Revenue = GMV − Price Reductions − Discount Codes + Shipping Revenue
Gross Orders = total number of successful orders placed
Gross AOV = Gross Revenue / Gross Orders
Returns = Gross Revenue value of all refunded items (formerly "Return Value")
Return Value % of Gross Revenue = Returns / Gross Revenue
Taxes = VAT payable
Tax % = Taxes / Gross Revenue
Net Revenue = Gross Revenue − Returns − Taxes
Net Orders = number of not-returned orders
Net AOV = Net Revenue / Net Orders
Margin waterfall:
COGS = landed product costs of all items sold
COGS % = COGS / Net Revenue
CM1 = Net Revenue − COGS
CM1 % = CM1 / Net Revenue
Logistics Costs = shipping, picking, returns, and other fulfillment costs
Logistics Costs % = Logistics Costs / Net Revenue
Transaction Costs = payment processing fees
Transaction Costs % = Transaction Costs / Net Revenue
CM2 = CM1 − Logistics Costs − Transaction Costs
CM2 % = CM2 / Net Revenue
Marketing Costs = all marketing spend from connected datasources
Marketing Costs % = Marketing Costs / Net Revenue
CM3 = CM2 − Marketing Costs → profit after all variable costs
CM3 % = CM3 / Net Revenue
Overhead Costs = salaries, rent, agency fees, software, and other costs entered in the Custom Costs sheet
Overhead % = Overhead Costs / Net Revenue
EBITDA = CM3 − Overhead Costs
Drill-downs:
Each major line item can be expanded to reveal a breakdown. Available drill-downs include:
Price Reductions — % of orders with price reductions
Discounts — % of orders with discount codes
Shipping Revenue — % of orders with shipping revenue
Returns — full return rate, partial return rate, cancellation rates, item return rate
Net Revenue — split by new customer revenue and repeat customer revenue
COGS — sold items vs. replacement items
Logistics Costs — broken down by general, shipping, packaging, picking, return, new customer, and other costs
Marketing Costs — MER, aMER, new customers, CAC, and split by performance/brand/other
Overhead Costs — broken down by category (agency, rent, salary, software, operations, other)
What can I use this for?
The Profitability Report is your central tool for understanding how every cost layer impacts your bottom line — and whether your business is becoming more or less profitable over time.
Practical applications:
Spot margin leakage — which cost line is eating into your CM2 or CM3 most? Expanding drill-downs shows exactly where
Set MER targets — use CM3 as a basis for calculating the marketing spend you can afford. See the guide on setting targets for your marketing team
Track trend lines — switching to a weekly or monthly view shows whether margins are improving or compressing over time
Compare periods — use the time period selector to compare this month vs. last month, or this quarter vs. the same quarter last year
Derive your MER target — use your CM2 to calculate the marketing spend your business can sustain. See the Klarcademy guide on setting targets for your marketing team