What is retail margin, and how do I calculate it?
Last updated: 7 November 2026 · The MargenOptimierer app is in German. Button and menu names are shown exactly as you see them, with the English meaning in brackets.
Retail margin is what's left of the selling price without VAT after you subtract the purchase price.
As a percentage, you calculate it on the selling price without VAT. OTTO commission, shipping costs, advertising and returns still come off the retail margin, so it isn't your profit. If you calculate the same amount on the purchase price, it's called markup.
Example: Retail margin for a cushion
Say a cushion has a purchase price of 20 € and sells for 59.50 € with VAT, so 50 € without. The retail margin is 30 €, which is 60% of the selling price without VAT.
Where this term appears
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