Gross profit = the profit from a specific business activity, in this case, sales, when looking solely at sales revenue less the specific costs of generating tha

Gross profit = the profit from a specific business activity, in this case, sales, when looking solely at sales revenue less the specific costs of generating that revenue (aka COGS). Net profit = the profit from the overall business, taking into account all sources of income and all expenses. Sales and marketing are usually not treated as part of COGS, because they are not a necessary expense (in this context, COGS would include things like materials and production costs).