Back margin in retail refers to the additional profit that a retailer earns from promotional activities conducted by the manufacturer or supplier, beyond the basic profit earned from selling the product at a markup from its wholesale cost. For example, a supplier might offer the retailer incentives like discounts on future purchases, rebates, or cooperative advertising programs for promoting or prioritizing their product. The money earned from these activities contributes to the retailer’s back margin. In other words, it’s the extra margin a retailer gets on top of the standard profit margin from selling a product. However, the definition may vary somewhat depending on the specific retail context or business model.