Net sales is basically the same as gross sales but minus three deductions
1. Sales allowances
3. Sales returns
If the customer makes a sales return for a full refund
In total, these deductions are the difference between gross sales and net sales. If a company does not record sales allowances, sales discounts, or sales returns, there is no difference between gross sales and net sales
If the difference between the two figures gradually increases over time, it can indicate problems with your products that are generating unusually large sales returns and allowances. Ideally, you'd want the gap between your gross sales and net sales to be as small as possible.