How To Track Shopify Profits and Losses in 2025 (+Free Tools)
- Step 1: Log in to your Shopify admin panel.
- Step 2: Click on Analytics from the left-hand menu.
- Step 3: Select Reports to access detailed financial insights.
- Step 4: Filter by "Profit Margin" to see profit-related data.
- Delayed and basic tracking: Shopify reports aren’t updated in real time and provide only basic profit calculations, missing key metrics like net profit, LTV, and ROAS.
- Manual expense management: Costs such as advertising, supplier payments, and operational expenses require manual tracking, as they aren't automatically included.
- Limited integrations and customization: Shopify doesn’t automatically factor in external costs (e.g., taxes, shipping, processing fees) and offers minimal customization for reports.
- Lack of forecasting and historical insights: Some reports have restricted date ranges, limiting long-term trend analysis, and there’s no built-in predictive analytics for future profits.
- Real-time profit tracking: Unlike Shopify’s delayed reports, TrueProfit provides up-to-the-second profit and loss calculations, ensuring you always have the most accurate financial data.
- Automated expense tracking: Automatically tracks all business costs, including COGS, shipping fees, ad spend, transaction fees, app subscriptions, and operational expenses.
- Accurate net profit-based reports: Go beyond gross profit or ROAS—TrueProfit factors in all hidden costs to give you a true picture of your bottom line (net profit).
- Seamless integrations: Fully integrates with Shopify, ad platforms (Facebook Ads, Google Ads), and shipping services to consolidate all financial data into one dashboard.
- Mobile app for on-the-go tracking: Stay updated on your store’s financial performance from anywhere with the TrueProfit mobile app.
- Net Profit: The money left after covering all your expenses—product costs, marketing spend, and operational overhead. This is the real bottom line of your business.
- Gross Profit Margin: The percentage of revenue remaining after subtracting the cost of goods sold (COGS). It shows how efficiently you're producing and selling your products.
- Customer Lifetime Value (LTV): The total revenue a customer is expected to bring in throughout their relationship with your store. A higher LTV usually means more long-term profitability.
- Return on Ad Spend (ROAS): A measure of how well your ads are performing—showing how much revenue you earn for every dollar spent on advertising.
- Shipping and Transaction Fees: Hidden costs like payment processing, fulfillment, and refunds can eat into your profits. Tracking these ensures you're not overlooking key expenses.
- Enable advanced inventory tracking systems: Monitor stock levels in real-time and factor in fulfillment costs to maintain an accurate financial picture.
- Account for all hidden costs: Don’t overlook additional expenses like packaging, warehousing, labor, and import duties, which can impact your profit margins.
- Regularly update cost structures: Keep track of fluctuating prices for raw materials, shipping, and operational expenses to ensure your calculations remain accurate.
- Create and manage COGS zones based on where your products are shipped.
- Enjoy full control over cost adjustments at the product or variant level.
- Seamlessly integrate COGS data from Shopify, CJ Dropshipping, or CSV files.
- Edit your COGS values directly in the app with just a few clicks.
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.
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.
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