Top 4 Reasons Why Shopify Merchants Need Profit-tracking App
Success in eCommerce isn’t just about increasing sales—it’s about maximizing profits. A profit-tracking app doesn’t just show your overall earnings; it breaks down which products, customers, and traffic sources bring in the most profit.
Tracking your store's profitability is essential, but manually monitoring profits, costs, and expenses is time-consuming and error-prone. A profit-tracking app automates this process, giving you real-time insights to help you make smarter business decisions.
Why Profit Tracking Matters?
Running a Shopify store without accurate profit tracking is like flying blind. You may see growing revenue, but without a clear breakdown of expenses, you might still be losing money. Key challenges include:
- Constant changes in product costs (COGS)
- Ad spend across multiple channels (Google, Facebook, TikTok, etc.)
- Hidden fees (transaction fees, shipping costs, order fulfillment, etc.)
A profit-tracking app automates these calculations, ensuring you always know your true profitability.
4 Reasons Shopify Merchants Need a Profit-Tracking App
1. Get a Real Picture of Your Store’s Profitability
Tracking your store’s financial health isn’t just about looking at revenue—it’s about understanding profitability. But with fluctuating costs, multiple ad channels, and hidden fees, getting an accurate picture is challenging.
Your supplier might adjust product costs (COGS) based on weight and quantity. You could be running ads across Facebook, Google, and TikTok, each with different spending patterns. While your revenue might increase, there are extra expenses—affiliate commissions, agency fees, shipping costs, and transaction fees—all chipping away at your margins.
To learn more, check out our article on the difference between revenue vs. profit.
2. Eliminate Costly Human Errors
Manually gathering financial data from multiple sources is not only time-consuming but also prone to errors. The more data you handle, the higher the chance of missing numbers, typos, or incorrect calculations.
One mistake in your tracking can create a domino effect, leading to inaccurate profit calculations and poor business decisions. The worst part? You might not even realize the mistake until it's too late.
With a profit-tracking app, every number is automatically pulled and updated in real time, ensuring accuracy across your reports. No more worrying about miscalculations - just reliable, error-free data at your fingertips.
3. Save Hours of Time on Manual Spreadsheets
Even if you avoid errors, manually updating spreadsheets is a massive time drain. Gathering data from Shopify, ad platforms, and payment processors can take hours—time that could be better spent on growing your business.
A profit-tracking app removes the need for manual updates by syncing data from all sources instantly. Instead of reviewing outdated reports, you get an immediate, up-to-date financial snapshot of your business. This lets you focus on more important tasks like marketing, product research, and customer service, rather than number-crunching.
For a quick check, try our free Profit Margin Calculator helps you stay ahead with up-to-date profit calculations.
#4. Make data-backed decision
Last but not least, one valid reason why every business needs to have a profit-tracking app is that the right profit-tracking app will help you make the right and timely decisions.
For instance, besides store-width profits and losses, TrueProfit can show the detailed breakdowns of your customer and profit analytics, helping you focus more on customers and products that truly matter.
Why TrueProfit is the Best Profit-Tracking App for Shopify
There are many profit-tracking apps on the market, and choosing the right one is the key to successfully understanding your business’ P&L. For that, you might love to try TrueProfit - a Shopify profit-tracking app trusted by thousands of merchants.
As its name suggests, TrueProfit will show you your true profit. But the best part is that it's in real time with automatic updates. This means you'll always stay on top of your business's financial health, knowing how much you are actually making or losing.
We know you're busy, so let's spend a minute taking a quick look at 6 features users love the most about TrueProfit:
1. Beautiful dashboard
See colorful graphs and charts depicting your Shopify store’s crucial metrics intuitively, like net profit, revenue, COGS, ad spends, etc.
2. All numbers from all data points
TrueProfit syncs data from all your ad channels, shipping platforms, etc., to guarantee all metrics are accurately calculated and automatically updated.
3. In-depth product insights
Know the profits and costs of every SKU and which products are most frequently bought together to run effective cross-sell campaigns, boosting your average order value.
4. Comprehensive customer profitability analysis
Focus on profitable customers with customer profitability metrics like Customer Lifetime Value (LTV), CAC, LTV:CAC ratio by traffic source, discount codes, countries, etc.
5. Advanced settings
Set up your COGS and shipping costs by location, quantity, weight, etc. This is impossible with Shopify Reports.
6. All-store view
Connect all your Shopify stores with TrueProfit and get a birds-eye view of all your stores' performance.
Tracy is a senior content executive at TrueProfit - specializing in helping eCommerce businesses scale profitably through content. She has over 4 years of experience in eCommerce and digital marketing editorial writing. She develops high-impact content that helps thousands of Shopify merchants make data-driven, profit-focused decisions.
