What is Retailer margin/markup?

This is the percentage of profit the retailer makes on the sales price of a product. If the profit is computed as a percentage of retailer’s cost of purchasing, it is known as markup.

The markup is what you add to your cost to get your selling price. Say something cost you $1.00 and you sold it for $1.25, then your markup would be .25 or 25%. Your selling price is 25% higher than your cost.

Your margin is the difference between your cost and your selling price compared to your selling price. So in the previous example your margin would still be .25, but as a percentage it would be 20% (.25/1.25*100). Your gross profit is 20% of your revenue.