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Understanding the "Payout summary report" tab

Updated over 7 months ago

The Payout Summary Report provides a detailed financial overview of bottle fulfillments and payout information for your distillery! Unlike other reports that mainly focus on sales activity, this report is all about the orders fulfilled during the reporting period, no matter when they were sold. It’s crafted to help you dive into the revenue-sharing structure, keep track of fulfillment-related expenses, and ensure that your payouts are spot on.

Inside, you’ll find important metrics like the number of bottles fulfilled, related revenues (including MSRP and adjusted figures), sales expenses that were incurred, and the payouts owed to your distillery.

Distillery

  • Definition: The unique identifier for your distillery as listed in the system.

  • Use case: Identifies which distillery the payout report refers to.

Total bottles

  • Definition: The total number of bottles fulfilled during the reporting period, regardless of when the order was placed.

  • Use case: Measures fulfillment volume for the period and provides insight into operational activity.

Total MSRP (Manufacturer's Suggested Retail Price)

  • Definition: The total retail value of all fulfilled bottles based on their MSRP.

  • Use case: Helps you understand the gross revenue potential before any adjustments or deductions.

Brand Gross %

  • Definition: The percentage of Total MSRP allocated to your distillery based on your revenue-sharing agreement.

  • Use case: Reflects the percentage share of revenue distributed to your distillery.

Brand Gross

  • Definition: The total amount payable to your distillery after applying the Brand Gross %.

  • Formula: Brand Gross = Total MSRP × Brand Gross %

  • Use case: Represents the gross earnings from bottle sales before deducting sales expenses.

Sales expenses

  • Definition: The total costs incurred due to store policies your distillery opted into, such as offering free shipping or honoring redeemed coupons. These do not include external costs like taxes, platform fees, or shipping but are the result of promotional incentives chosen by the distillery.

  • Use case: Tracks the impact of promotional strategies on your gross revenue. By analyzing these expenses, distilleries can evaluate the effectiveness of free shipping offers, discounts, or other promotions to maximize profitability.

  • Learn more about Managing store policies.

Brand net

  • Definition: The amount payable to your distillery after deducting sales expenses from brand gross.

  • Formula: Brand Net = Brand Gross − Sales Expenses

  • Use case: Represents the final payout due to your distillery after accounting for fulfillment-related expenses.

Example walkthrough of the data

Here’s an example row to help interpret the report:

Metric

Value

Distiller Name

My Distillery

Total Bottles

1,329

Total MSRP

$8,710.03

Brand Gross %

65.00%

Brand Gross

$5,661.52

Sales Expenses

$100.00

Brand Net

$5,561.52

Interpreting the data:

  • Total bottles: Indicates how many bottles were fulfilled during this reporting period.

  • Total MSRP: Reflects the total retail value of these fulfilled bottles.

  • Brand gross: Your distillery’s share of revenue before expenses.

  • Sales expenses: Reflects the promotional costs your distillery absorbed (e.g., free shipping or coupons).

  • Brand net: The revenue remaining after deducting sales expenses.

How to use the report

  1. Understand revenue sharing: Focus on the Brand Net to understand what the retailer directly owes you.

  2. Track sales expenses: Use the sales expenses column to identify the impact of promotional strategies and evaluate their cost-effectiveness.

  3. Compare period performance: Use metrics like Total bottles and Total MSRP to evaluate performance over time.

FAQs

Why is my brand net lower than my brand gross?

The difference accounts for Sales Expenses, which are deductions from promotional incentives like free shipping or coupons redeemed by customers.

How are sales expenses calculated?

These are based on the store policies your distillery opted into, such as discounts or free shipping.

What is the difference between total bottles and total MSRP?

  • Total bottles reflects the fulfillment volume.

  • Total MSRP reflects the potential gross revenue from these bottles.

This article provides an overview of the Payout Summary Report and how to interpret its key metrics.

For further assistance, please contact [email protected].

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