Common Mistakes When Calculating Profit Margins for Shopify Stores

By Irene LeFebruary 28, 20256 min read
Common Mistakes When Calculating Profit Margins for Shopify Stores
  • Assuming that higher revenue means higher profit — Focusing solely on revenue can be misleading, as it doesn’t account for costs and expenses.
  • Assuming that all products and customers bring equal profitability — Without segmenting your customers and products based on profitability, you may end up investing resources inefficiently.
  • Returns & Refunds
  • Payment Processing Fees
  • Third-Party App Fees
  • Outsourcing Costs
  • Costs of Professional Services
  • Real-time profit dashboard
  • Detailed product analytics of every SKU, including frequently bought-together items
  • Comprehensive customer profitability analytics like CLV, CAC, LTV:CAC ratio, etc.
  • Aggregated view of multiple Shopify stores in one central hub
  • Advanced COGS, shipping costs, and custom expenses tracking

trueprofit

avatar
Irene Le

Content Manager at TrueProfit & eCommerce Marketing Specialist

Irene Le is the Content Manager at TrueProfit, specializing in crafting insightful, data-driven content to help eCommerce merchants scale profitably. With over 5 years of experience in content creation and growth strategy for the eCommerce industry, she is dedicated to producing high-value, actionable content that empowers merchants to make informed financial decisions.

Related BlogsSee All
6+ Best BeProfit Alternatives for Profit Tracking in 2025 (+Real Reviews)
eCommerce

6+ Best BeProfit Alternatives for Profit Tracking in 2025 (+Real Reviews)

Low Cost, High Profit Margin Products for eCommerce in 2025 
eCommerce

Low Cost, High Profit Margin Products for eCommerce in 2025 

7+ Top Shopify Stores to Inspire Your Brand in 2025  
eCommerce

7+ Top Shopify Stores to Inspire Your Brand in 2025