Setting up costs for your store is crucial to let TrueProfit accurately calculate your profit and expenses. Your cost settings will affect the Total Cost, Net Profit, Net Profit Margin, and more metrics.
To ensure accurate cost tracking, it is important to add all the costs currently incurred in your Shopify store using the available settings on TrueProfit, including Cost of Goods, Shipping Costs, Transaction Fees, Taxes Paid, and Custom Costs.
Setting up Cost of Goods
The Cost of Goods Sold (COGS) metric is one of the most important metrics for your store as it represents the direct costs associated with producing the products you sell. This includes expenses for materials, labor, and manufacturing that are directly tied to the production of goods.
By accurately calculating COGS, you can determine the gross profit margins, set competitive pricing, and understand the true cost of your inventory.
Currently TrueProfit has 2 COGS versions:
Set up Shipping Costs or Integrate Shipping Providers
Shipping Costs is the cost incurred when you ship an order to your customer. In TrueProfit, you can set up this cost by Shipping zones and by specific products.
Currently TrueProfit has 2 Shipping Cost versions:
Set up Shipping cost version 2
If you are using a shipping provider to fulfill orders for your store, make sure to integrate it with TrueProfit so that the app can pull the correct shipping costs for your orders. TrueProfit currently supports the following providers: Shippo, ShipBob, ShippingEasy, Shiphero, Shipwire, and ShipStation, available in all subscription plans.
Read about Integrating Shipping Providers.
Watch tutorial video: Connecting a Shipping provider
Connect Marketing Channels to get accurate Ad Spend
If you are currently running ads on social media channels like Facebook, Google, TikTok, Taboola, Microsoft, Pinterest, Snapchat, X, and Amazon, make sure to connect your ad accounts to TrueProfit. This will help the app syncs accurate Ad Spend and other metrics like Impressions, Clicks, ROAS, and more for each channel.
Search your platform you're using and read how to connect it with TrueProfit
All integration platfoms Connecting Marketing Channels
Watch tutorial video: Connecting marketing channels
Integrating your Marketing Channels is also important for reports like Product Analytics and Marketing Attribution to calculate Ad Spend and Net Profit for your products.
Set up Transaction Fees
Transaction fees are the fees TrueProfit tracks for each order paid through a payment provider, combining the Payment Gateway Fee (e.g. PayPal, Stripe) and, if applicable, Shopify's Fee for 3rd-Party Payments.
TrueProfit auto-detects your store's payment methods and calculates each order's transaction fee as Payment Gateway Fee + Shopify 3rd-Party Fee, then updates your reports automatically whenever you change a fee rate. You can view and edit these rules from Transaction Fees in your Dashboard.
Set up Custom Costs or Taxes Paid, and Handling Fees
These costs are optional settings to help you add your operational costs and track them effortlessly in TrueProfit.
1. Custom Cost
Custom Costs consist of Fixed Costs and Variable Costs that help you add and keep track of one-time or recurring costs that you have. For example: Employees' salary, software subscriptions, one-time payments, and more.
2. Taxes Paid
Taxes Paid are the taxes your business pays to the government.
Now you can manually set up tax costs you pay to your government in Custom Cost page . Taxes paid are considered as a category in the custom cost. Once taxes are set up in TrueProfit, you can start tracking all your costs more accurately and easily.
3. Handling Fee
Handling Fees is the cost of processing and fulfilling an order or providing a specific service in your store.
You can add the Handling Fees for each product in the Cost of Goods for each order in the Order Report page or add them to Custom Cost