🤔 What is the Gross Sales Report?
No matter what kind of business you run, the first thing that captures your attention is sales. The higher the sales, the more successful your company is. Of course you have to differentiate the sales, account for various costs and compare the numbers in order to get a clear picture. This is when different sales reports come into play.
A Gross Sales Report shows the grand total of sales your company earned throughout a specific period of time, unadjusted for the costs connected with generating those sales.
Gross sales don’t take into account expenses associated with running a business (also known as cost of goods sold (COGS)) as well as modifications to pricing (discounts, rebates and returns), tax expenses and other charges. It only factors in the total amount of purchases made.
For example, if a dressmaker sold 10 dresses for $100 each, the gross revenue would be $1000, even though the dresses cost $400 to make. The Gross Sales Report in this case would state $1000.
⚖️ How is the Gross Sales Report calculated?
While calculating your gross sales manually, you’d want to use a simple formula:
Gross Sales = Total amount of sales over a specific time period
Follow these simple steps:
- Think about a period of time you wish to review.
- Determine the product cost – the total amount of money the customers spent on your products or services in a given period of time.
Remember that the amount you arrive at doesn’t factor in returns, discounts or any other later pricing modifications.
Sounds easy, but if you don’t want to spend some extra time going through the numbers and want to have this and other important metrics at hand at all times, check out Synder Insights – an all-in-one source of truth that provides instant reports on the most important KPIs any e-commerce business must track.
To generate the Gross Sales Report, Synder adds together all the sale invoices or related revenue transactions prior to discounts, returns, allowances or any other modifications in pricing throughout a specific period of time.
🔎 What do these numbers tell us?
Gross sales is an important metric for tracking a company’s revenue during a certain period of time and assessing a business’s ability to generate income. Although it’s a universal concept across all industries, it’s extremely useful for businesses operating in retail because it helps to determine consumer buying trends and spending habits. Retailers usually compare gross sales with net sales (which take into consideration all the expenses accumulated throughout the process of generating the products sold). This comparison allows businesses to get valuable insights about activity related to product quality, price increases, discounts and helps to plan orders and stocking.
Basically, gross sales show how much market share is being captured by your business and how much the selected customer outreach strategies are working. As these activities are expected to generate more sales, plotting this metric over time lets you figure out if the market is responding well to new products or marketing campaigns.
Investors frequently use this metric to determine if the business is generating sales faster or slower than its competitors. It’s viewed as an indicator of whether a company’s niche is maturing, which signifies changes in the value of a company.
📈 What can be done to grow sales based on these numbers?
Gross sales typically can’t be found on an income statement but they might be listed as total revenue.
Thanks to Synder Gross Sales Report, you can
- maximize your sales
- track acquisition funnels to convert visitors to customers
- build customer profiles to target your best-selling items
- demonstrate the value of your company to potential investors
Let Synder Business Insights do the numbers so that you can focus on the right strategies for your business!