Net realised revenue
The revenue you actually keep after discounts, cancellations, RTO, returns and GST come out of gross sales. It's the honest top line, and the one every ROAS and margin calculation should start from.
Gross order value is the cart value at checkout, before anything is taken off.
What is net realised revenue?
The revenue number most dashboards and ad platforms show is gross: the value of every order placed. But a placed order isn't money in the bank. Some get cancelled, some come back undelivered, some get returned, discounts were never yours, and GST belongs to the government.
Net realised revenue is what's left once all of that is taken out. For brands with a lot of COD orders the gap can be large, because COD orders are the ones most likely to come back undelivered.
How it's calculated
Each deduction comes from a different system, which is why few brands see this number clearly. You need order data and shipping outcomes joined on the same order ID.
| Deduction | Where it comes from | When it's known |
|---|---|---|
| Discounts | Shopify order: coupons, automatic and prepaid discounts | At checkout |
| Cancellations | Shopify order status, plus COD confirmation calls | Hours to a couple of days |
| RTO | Shipping partner status, matched by order ID | Days to weeks |
| Returns | Refunds and reverse pickups | Up to the end of the return window |
| GST | Tax rate per product, on what's actually realised | With the order |
Tracking it over time
Net realised revenue isn't final the day an order is placed. It settles over the following weeks as orders are delivered, sent back or returned.
- 1Group by order dateTie every deduction back to the day the order was placed, not the day it came back.
- 2Mark recent days provisionalOrders still in transit haven't realised yet. Estimate them from your historical RTO rate.
- 3True it upAs shipments resolve, swap estimates for actuals. Compare months only once both have settled.
Worked examples
Example 1: A month of orders, from gross to net
An illustrative brand books ₹10,00,000 of gross orders in October. GST is 18% and included in prices.
| Line | Amount | Running total |
|---|---|---|
| Gross order value | ₹10,00,000 | ₹10,00,000 |
| Discounts | −₹80,000 | ₹9,20,000 |
| Cancellations | −₹50,000 | ₹8,70,000 |
| RTO | −₹1,30,000 | ₹7,40,000 |
| Returns | −₹32,000 | ₹7,08,000 |
| GST (18% inclusive: ₹7,08,000 × 18 ÷ 118) | −₹1,08,000 | ₹6,00,000 |
| Net realised revenue | ₹6,00,000 | 60% of gross |
- RTOThe single biggest leak here, bigger than GST. It's also the one marketing has the most influence over, through which campaigns and audiences it scales.
- 60%If ads were judged on ₹10,00,000, every ROAS figure would be overstated by two thirds compared with what the brand keeps.
Example 2: Same gross, very different net
Two illustrative campaigns each book ₹5,00,000 of gross orders in a month.
Using net realised revenue to decide
Watch the realisation rate by channel, campaign and payment method. These rows are starting points; the right level depends on your category and COD mix.
Common mistakes
- Calculating ROAS on grossAd platforms report gross purchase value. Divide net by spend instead.
- Adding GST on topIf prices include GST, carve it out with rate ÷ (100 + rate), not by multiplying by the rate.
- Closing the month too earlyLast week's orders haven't resolved. Treat them as provisional until shipments settle.
- Booking RTO in the wrong monthTie it to the order date, or each month's ads get blamed for the previous month's traffic.
Frequently asked questions
Is net realised revenue the same as Shopify's net sales?
Not quite. Shopify net sales take out discounts and refunds, but Shopify doesn't know about RTO unless the order is cancelled or refunded in Shopify. You need shipping partner data matched to each order to see RTO properly.
Should shipping charged to the customer count as revenue?
Count it if you also count the shipping cost in your margins. Be consistent, or the shipping you collect will quietly flatter your ROAS.
How long until a month's number is final?
Once its last orders are delivered or back at the warehouse and the return window has passed. Check how long that takes for your couriers and return policy.
Related metrics
See what your revenue really is
BooleanMaths joins Shopify orders with shipping partner outcomes at order level, so cancellations, RTO and returns come out before you judge a single campaign.
Net realised revenue
The revenue you actually keep after discounts, cancellations, RTO, returns and GST come out of gross sales. It's the honest top line, and the one every ROAS and margin calculation should start from.
Gross order value is the cart value at checkout, before anything is taken off.
What is net realised revenue?
The revenue number most dashboards and ad platforms show is gross: the value of every order placed. But a placed order isn't money in the bank. Some get cancelled, some come back undelivered, some get returned, discounts were never yours, and GST belongs to the government.
Net realised revenue is what's left once all of that is taken out. For brands with a lot of COD orders the gap can be large, because COD orders are the ones most likely to come back undelivered.
How it's calculated
Each deduction comes from a different system, which is why few brands see this number clearly. You need order data and shipping outcomes joined on the same order ID.
| Deduction | Where it comes from | When it's known |
|---|---|---|
| Discounts | Shopify order: coupons, automatic and prepaid discounts | At checkout |
| Cancellations | Shopify order status, plus COD confirmation calls | Hours to a couple of days |
| RTO | Shipping partner status, matched by order ID | Days to weeks |
| Returns | Refunds and reverse pickups | Up to the end of the return window |
| GST | Tax rate per product, on what's actually realised | With the order |
Tracking it over time
Net realised revenue isn't final the day an order is placed. It settles over the following weeks as orders are delivered, sent back or returned.
- 1Group by order dateTie every deduction back to the day the order was placed, not the day it came back.
- 2Mark recent days provisionalOrders still in transit haven't realised yet. Estimate them from your historical RTO rate.
- 3True it upAs shipments resolve, swap estimates for actuals. Compare months only once both have settled.
Worked examples
Example 1: A month of orders, from gross to net
An illustrative brand books ₹10,00,000 of gross orders in October. GST is 18% and included in prices.
| Line | Amount | Running total |
|---|---|---|
| Gross order value | ₹10,00,000 | ₹10,00,000 |
| Discounts | −₹80,000 | ₹9,20,000 |
| Cancellations | −₹50,000 | ₹8,70,000 |
| RTO | −₹1,30,000 | ₹7,40,000 |
| Returns | −₹32,000 | ₹7,08,000 |
| GST (18% inclusive: ₹7,08,000 × 18 ÷ 118) | −₹1,08,000 | ₹6,00,000 |
| Net realised revenue | ₹6,00,000 | 60% of gross |
- RTOThe single biggest leak here, bigger than GST. It's also the one marketing has the most influence over, through which campaigns and audiences it scales.
- 60%If ads were judged on ₹10,00,000, every ROAS figure would be overstated by two thirds compared with what the brand keeps.
Example 2: Same gross, very different net
Two illustrative campaigns each book ₹5,00,000 of gross orders in a month.
Using net realised revenue to decide
Watch the realisation rate by channel, campaign and payment method. These rows are starting points; the right level depends on your category and COD mix.
Common mistakes
- Calculating ROAS on grossAd platforms report gross purchase value. Divide net by spend instead.
- Adding GST on topIf prices include GST, carve it out with rate ÷ (100 + rate), not by multiplying by the rate.
- Closing the month too earlyLast week's orders haven't resolved. Treat them as provisional until shipments settle.
- Booking RTO in the wrong monthTie it to the order date, or each month's ads get blamed for the previous month's traffic.
Frequently asked questions
Is net realised revenue the same as Shopify's net sales?
Not quite. Shopify net sales take out discounts and refunds, but Shopify doesn't know about RTO unless the order is cancelled or refunded in Shopify. You need shipping partner data matched to each order to see RTO properly.
Should shipping charged to the customer count as revenue?
Count it if you also count the shipping cost in your margins. Be consistent, or the shipping you collect will quietly flatter your ROAS.
How long until a month's number is final?
Once its last orders are delivered or back at the warehouse and the return window has passed. Check how long that takes for your couriers and return policy.
Related metrics
See what your revenue really is
BooleanMaths joins Shopify orders with shipping partner outcomes at order level, so cancellations, RTO and returns come out before you judge a single campaign.