The Easiest Way to Review Profit in Your Shopify Store

Shopify is a leading e-commerce platform that provides its users with in-depth analytics about revenue. However, if you want insights into profit, you'll have to enable the Shopify "cost per item" feature. This allows you to track the costs associated with the products you sell.

Add the Cost per Item to Product Listings

Adding a cost per item to your products will help you get the most value from your profit report. However, be aware that profits are only reported for products and variants that had costs recorded at the time of sale.

To get value from your profit data, you need to add up the costs of each item that you sell and divide that number by the quantity sold. If you don’t do this, you won’t know how much money you’ve earned on each sale.

How to Add Cost per Item in 4 Simple Steps

1. From your Shopify admin, select Products.
2. Choose the product you want to edit.
3. Add a dollar value in the Cost per item field in the Pricing section. The cost per item is the unit price of the product or variant. If you're reselling a product, you can enter the cost you paid the manufacturer, including taxes, shipping, and other charges. If you created the product yourself, you can enter a value based on your labor and material costs.
4. Select Save.

Follow These Steps to View Profit Reports: 

On Desktop:

1. From your Shopify admin, go to Analytics > Reports.
2. In the Profit margin section, choose the report that you want to review.

 On the Shopify App: 

1. From the Shopify app, tap Store, then tap Analytics.
2. Tap Reports.
3. In the Profit margin section, choose the report that you want to review.

Conclusion

Understanding your cost per item is an essential step in any e-commerce cash flow analysis guide. You can use this information along with your total product count to determine whether you are over- or underselling items for your current price points. Analyzing your profit report will help you make an informed decision about future strategies.