Net Revenue

Revenue remaining after deducting refunds, returns, discounts, and chargebacks from gross revenue, representing the actual income retained by the business from its sales activity.

Gross revenue looks impressive but net revenue reveals what the business actually keeps. High return rates or frequent discounting can make gross revenue misleading and mask a declining business performance.

A founder's e-commerce store generates £50,000 in gross revenue during a quarter. After £4,200 in returns, £1,800 in discount codes redeemed, and £600 in chargebacks, her net revenue is £43,400. This is the true income figure she uses for profitability analysis.