Profit analytics, true margin, contribution margin and the art of running a Shopify store on real numbers.
A store can make $58,000 in gross profit and only $8,000 in net profit from the same $100,000 in sales. Learn what each figure measures, how to calculate both margins and which one to use for pricing, ad spend and overall profitability.
A $100 order can look excellent at first. The product costs $35, leaving what appears to be $65. Then the order has to be packed and shipped. The payment needs processing. Some customers will request refunds. If paid advertising brought the customer in, that has to be paid for too.
Your Shopify store can have its best sales month ever and still leave you wondering where the profit went. Revenue might be growing. Your ad accounts might show healthy ROAS. Orders might be up. But none of those numbers tells you what the products you sold actually cost. That is
Your Shopify dashboard says you made $200,000 this month. Your products cost $72,000. So you made $128,000 profit, right? Not even close. That calculation gives you a rough view of gross profit, assuming your $72,000 product cost is accurate in the first place. It says nothing
Most ecommerce problems do not arrive with an obvious warning. Your Shopify dashboard rarely flashes red and tells you: "Your store became materially less profitable yesterday." Instead, the warning signs tend to appear across different systems. Meta spend creeps higher. Google Shopping ROAS softens. Conversion rate falls slightly.
The monthly agency report says performance is strong. Meta reports a 4.6x return on ad spend. Google Ads reports 5.1x. Revenue is up 18 per cent and cost per purchase is down. Then the client asks the question that changes the meeting: “Why is there less money in
Learn how to negotiate better COGS, reduce landed costs and improve ecommerce margins with practical supplier negotiation steps.
Revenue-based funding can help ecommerce brands scale, but only if margins and cash flow support it. Learn when it works and when to avoid it.
Learn how margin by region helps ecommerce brands see which countries are truly profitable after costs, shipping, refunds and ad spend.
P&L stands for profit and loss. Learn what a P&L statement means, how to read one, the key formulas, and how ecommerce brands track true profit.
Most ecommerce brands are not short on reports. They have Shopify reports, Google Ads dashboards, Meta Ads dashboards, GA4, spreadsheets, agency updates and maybe a few screenshots floating around Slack. The problem is that none of them seem to tell the same story. Google Ads might say Shopping is performing
Ozzi Gear is a rapidly scaling outdoor gear brand shipping lightweight camping chairs, loungers and hooded blankets across Australia, New Zealand, the United Kingdom, Europe and Canada. Like many growing ecommerce brands, they had revenue in Shopify, ROAS in ad platforms, and the real profit number buried in a spreadsheet
