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Home/KnowledgeBase/Explain To Me/What Is The Difference Between Ordered Product Sales And Revenue

What Is The Difference Between Ordered Product Sales And Revenue

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📊 Ordered Product Sales vs Revenue in SellerLegend

When you’re reviewing sales data in SellerLegend, two metrics you’ll see a lot are Ordered Product Sales and Revenue.
Although they sound similar, they are calculated differently and serve different purposes.
Understanding them helps you see the difference between your raw sales activity and your actual sales income.


📦 Ordered Product Sales

Definition

  • The total catalogue value of products ordered, before any adjustments.

Formula

Ordered Product Sales = Item Price × Quantity Ordered

What’s included

  • Only the item price.

What’s excluded

  • Shipping,
  • Gift wrap,
  • Promotions,
  • VAT,
  • or any Amazon fees.

Where it comes from

  • Exactly matches Amazon’s “Ordered Product Sales” metric in Seller Central.

👉 This is the cleanest measure of pure product sales performance.

Example

  • 10 units × £20 each = £200 Ordered Product Sales

💰 Revenue

Definition

  • Revenue in SellerLegend is your net sales figure.
  • It reflects the actual sales income credited to you by Amazon, before expenses/fees, by adjusting Ordered Product Sales for extras and deductions.

📐 Revenue Formula

Revenue =
Ordered Product Sales
+ Shipping Income
+ Gift Wrap Income
– Amazon Promotions/Discounts
– Marketplace Facilitator VAT / Sales Tax

🔹 Adjustments in Detail

➕ Shipping Income

  • FBM: If you charge the customer for shipping, Amazon records that income and it is added to your revenue.

  • FBA: Amazon sets standard shipping rates and charges the customer directly, but does not pass it to you. So for most FBA sellers, Shipping Income = £0.

➕ Gift Wrap Income

  • FBM: If the buyer pays for gift wrap, Amazon passes this income to you.

  • FBA: Amazon may set and handle gift wrap, but generally you still see the credit in your account if the customer selected it.

➖ Amazon Promotions / Discounts

  • Covers all coupons, vouchers, Lightning Deals, or “Buy X Get Y” promos you set up.

  • The discount is at your expense (not Amazon’s), so SellerLegend subtracts it from revenue.

➖ Marketplace Facilitator VAT / Sales Tax

  • In many regions (UK, EU, US states), Amazon is legally obligated to collect and remit taxes on the customer’s behalf.

  • That portion never belongs to you, so it is stripped out of your revenue.

  • Example: Customer pays £120 (including £20 VAT). SellerLegend removes the £20 and only counts £100 as sales revenue.


✅ Worked Example

You sell 10 units of a £20 product on Amazon UK.

  • Ordered Product Sales = 10 × £20 = £200

  • Shipping income (FBM only) = +£15

  • Gift wrap = +£5

  • Promotion discount = –£10

  • VAT withheld (Marketplace Facilitator) = –£33

Revenue = £200 + £15 + £5 – £10 – £33 = £177


🔑 Key Takeaways

  • Ordered Product Sales = raw catalogue sales value only.

  • Revenue = real sales income you can attribute to your business before costs and fees.

👉 Ordered Product Sales shows “how much product you sold.”
👉 Revenue shows “how much Amazon says you actually earned from those sales.”

  • FBM sellers may see Shipping and Gift Wrap Income regularly added.

  • FBA sellers often won’t see Shipping Income, since Amazon handles shipping charges.


A Few More Words!

Because Revenue in SellerLegend is a derivative of Ordered Product Sales (OPS) with extra adjustments, the two can move above or below one another depending on which adjustments dominate.

Let’s break it down:


🔽 Revenue Lower than Ordered Product Sales

This happens when the deductions outweigh the additions:

  • Promotions/Discounts → coupons, vouchers, Lightning Deals reduce Revenue.

  • Marketplace Facilitator VAT/Sales Tax → Amazon withholds VAT/sales tax and remits it directly, reducing Revenue.

  • Refunds (via Orders API) → immediately deducted from OPS in SellerLegend, and flow through into Revenue too.

👉 Typical for FBA sellers in the UK/EU/US where facilitator taxes apply, or if you run a lot of promotions.

Example:

  • OPS = £200

  • – £20 VAT

  • – £10 promotion
    = Revenue = £170


🔼 Revenue Higher than Ordered Product Sales

This happens when the additions outweigh the deductions:

  • Shipping Income → FBM sellers charging for shipping (e.g., £5.99 delivery fee).

  • Gift Wrap Income → customers pay extra for gift wrapping.

👉 Typical for FBM sellers, since they control shipping charges and sometimes gift wrap.

Example:

  • OPS = £200

    • + £15 shipping
    • + £5 gift wrap
      = Revenue = £220


⚖️ Netting Out

  • FBA sellers: almost always see Revenue < OPS, because there’s rarely shipping/gift wrap income, but VAT and promotions reduce the figure.

  • FBM sellers: may see Revenue > OPS, if shipping and gift wrap exceed discounts and taxes.


🔑 Rule of Thumb:

  • Revenue < OPS → promotions or taxes dominate (common in FBA).

  • Revenue > OPS → shipping/gift wrap dominate (common in FBM).

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