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Profit Margin Report

 

Profit Margin Report shows you the profitability analyzed by product, multi-variant, and POS location.

You can see the latest data when you open the profit margin report, which takes about 1-2 minutes, or by reopening or refreshing the report. It should be noted that a profit margin report only reports the profit of products with a cost record at the time of sale. To get value from your profit margin report, you need to add a cost per item to your products. 

 

In This Article

 


 

Adding Cost Price to Product

To add cost price to your product, follow the steps below:

  1. From the SHOPLINE’s Admin panel, go to the Products tab and click on the product name to edit it.
  2. For a single variant, add the US dollar value to the cost price field in the price/transaction; for multiple variants, add the US dollar value to the cost price field in the corresponding row. The cost price is what you pay for a product or multiple variants. For example, if you resell a product, you can enter the price you paid to the manufacturer, excluding taxes, shipping, or other fees.  If you create your product, you can enter the price based on labor and material costs. The cost price is not shown to customers.
  3. Click Update.

 


 

Common Metrics

The common metrics used in the Profit Margin Report are as follows:

Metric Definition
Distribution Costs = Product cost price × Quantity of items.
Gross Profit = Net sales - Distribution costs.
Gross Margin = (Net sales - Distribution costs)/Net sales.
Net Sales Net sales = Subtotal - Discounted amount - Points deduction + Rounding adjustment amount - Refund amount.

 


 

Viewing Profit Margin Report

A profit margin report has three sub-reports, and the reporting topics are as follows:

  • Analyze by product: It shows your gross profit and gross margin by-product for the selected date range.
  • Analyze by multivariant: It shows your gross profit and gross margin by multivariant for the selected date range.
  • Analyze profit by POS location: It shows your gross profit and gross margin by POS location for the selected date range. If the POS sales channel is not enabled, the POS location of the order is displayed as N/A.
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