What Is Gross Profit After Marketing (GPAM) in Print-on-Demand?

Not sure how to calculate profit in POD? Start with our Step-by-Step Guide to Calculating POD Profits. Once you understand the basics, GPAM becomes the next layer of insight. If you’re ready to skip spreadsheets, PodVector automatically calculates GPAM across your store and ad accounts.

Definition

Gross Profit After Marketing (GPAM) is the profit left after subtracting marketing costs from gross profit. It accounts for your biggest POD expense: ad spend.

Think of it like this:

• Gross Profit: Sales – COGS
• GPAM: (Sales – COGS) – Marketing

If gross profit answers “Am I pricing correctly?”, GPAM answers “Am I marketing profitably?”

Formula for GPAM

The simple formula is:

GPAM = Total Sales – (COGS + Marketing Spend)

It’s basically gross profit, adjusted for ads. Some sellers also call it “Contribution Margin 1.”

Example Calculation

Let’s say your POD store sells $10,000 in t-shirts this month.

• Total Sales: $10,000
• COGS: $4,000 (from Printify/Printful)
• Gross Profit: $6,000
• Marketing Spend: $4,500 (Meta + TikTok ads)

GPAM = $10,000 – ($4,000 + $4,500) = $1,500

Even though your gross profit was $6,000, you’re left with just $1,500 after ads. That’s your GPAM. If marketing spend rises, GPAM shrinks.

Why GPAM Is Different From Gross Profit

Most POD sellers stop at gross profit and think they’re doing well. But here’s the trap:

• You could have a 50% gross margin but lose money if ads are inefficient.
• Gross profit ignores the reality that customer acquisition costs (CAC) are your biggest expense in POD.
• GPAM brings ads into the picture, showing your true marketing-adjusted margin.

This is why GPAM often matters more than gross profit.

Why GPAM Matters in POD

Here’s why smart POD sellers track GPAM:

• Ad scaling decisions: GPAM shows whether scaling a campaign will still leave profit.
• Product testing: You’ll see which designs can handle ad spend and which collapse under it.
• Cash flow health: A negative GPAM means your ads are burning cash, no matter how high sales look.
• Break-even ROAS checks: GPAM helps you identify when your ads are at or below break-even.

Benchmarks for GPAM

In POD, there isn’t one “perfect” GPAM, but here are good ranges:

• Positive GPAM: At minimum, GPAM should always be above zero. Negative GPAM means you’re losing money after ads.
• Healthy GPAM margin: 15–25% is a strong GPAM margin for POD sellers.
• Ad-heavy niches: If you run high-volume ads, even 10% GPAM may be acceptable short-term while scaling.

How to Improve GPAM

To strengthen GPAM, you need to either increase gross profit or reduce marketing spend per sale:

• Raise AOV: Bundle products, offer volume discounts, or add upsells so ads stretch further.
• Optimize ads: Cut campaigns below break-even ROAS, and double down on winners.
• Improve conversion rates: Better product pages and checkout flows mean more orders per ad dollar.
• Focus on high-margin products: Prioritize items with lower COGS relative to selling price.
• Use organic traffic: Balance paid ads with SEO, email, and organic TikTok/Instagram growth.

How to Track GPAM

Manual Tracking

1. Export sales and COGS data from Shopify + Printify/Printful.
2. Export ad spend from Meta, TikTok, Google, or Pinterest dashboards.
3. Subtract total ad spend from gross profit.
4. Calculate GPAM margin: (GPAM ÷ Sales) × 100.

This works, but it’s time-consuming, especially if you run multiple ad platforms.

Automated Tracking

PodVector automatically syncs sales, COGS, and ad spend into one dashboard. That means you’ll see GPAM for every product, campaign, and order in real time—without spreadsheets.

FAQs

Is GPAM the same as operating profit?

No. GPAM only subtracts ads and COGS. Operating profit also subtracts shipping, fees, and refunds. GPAM is one step closer to reality but still not the full picture.

What’s a good GPAM margin for POD?

15–25% is solid. Anything above 30% is excellent. If GPAM is negative, your ads are unprofitable.

Can I scale ads with low GPAM?

Scaling with a low GPAM margin (under 10%) is risky. You’ll burn cash unless you have strong repeat buyers or organic sales to offset ad costs.

Does Shopify track GPAM?

No. Shopify doesn’t connect ad spend to product-level gross profit. You need spreadsheets or a tool like PodVector to see it in one place.