Profit

Profit is the core financial indicator of foreign trade business, referring to the net surplus after deducting all costs and expenses from export sales revenue. In foreign trade scenarios, profit is usually divided into gross profit (sales revenue minus cost of goods) and net profit (further deducting freight, insurance, tariffs, commissions, bank charges, tax rebates, etc.). Use cases include quotation calculation, order profit and loss analysis, and annual performance evaluation. Notes: Foreign trade profit is greatly affected by exchange rate fluctuations, tax rebate rate adjustments, and ocean freight changes, so risk space should be reserved when quoting; commissions and hidden commissions need to be clearly specified whether they are included in costs; under different trade terms (such as FOB, CIF), cost composition differs, and the profit calculation basis must be consistent. Difference from 'gross profit', 'net profit', and 'markup rate': profit is an absolute amount, while markup rate is the percentage of profit to cost; gross profit deducts only the cost of goods, while net profit deducts all expenses. Foreign trade practitioners should calculate profit order by order to avoid actual losses caused by omitted expenses.