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## Determining Profit of Products when shipping multiple Products and 1 Shipping Charge?

New Member
8 0 0

Hi,

Can anyone shed some light how they determine the actual profit for a shipment?

Hypothetical Example:

Customer Orders:

1G of Liquid Rubber - \$54.95

1 Roll of Seam Tape - \$43.95

1 Brush - \$5.99

1 Disposable Gloves - \$3.49

Total - \$108.38 Customer pays this and gets Free Shipping

Lets say our costs are:

1G of Liquid Rubber - \$24.95 - Profit - \$30

1 Roll of Seam Tape - \$23.95 - Profit - \$20

1 Brush - \$3.99 - Profit - \$2

1 Disposable Gloves - \$1.49 - Profit - \$2

Total Profit = \$54

Lets not take into account any costs (tax, CC fees, Fullfillment, Customs...) other than Shipping

Shipping Cost = \$17.68

Question is, how do we allocated shipping costs to each product to determine what our actual profit is?

How do other people determine their acutal profit?

Does anyone have a spreadsheet they use that helps out?

Thanks in advance for your time.

Ray

www.LiquidRubber.ca

Excursionist
13 0 5

There's two ways you can do it:

The quick and easy way:

1) Divide the shipping cost by the number of items in the shipment i.e. \$17.68/4=\$4.41 So shipping cost per item is \$4.41. However, this isn't an accurate representation of the shipping cost for a pair of disposable gloves!

Or the slightly long-winded but more accurate way:

2) Apportion the shipping cost by the weight of each item. This involves knowing the weight of each product individually. You would then apportion the total cost to each item for example:

Let's say for example:

1G of Liquid Rubber weighs 500g

1 Roll of Seam Tape weighs 250g

1 Brush - weighs 150g

1 Disposable Gloves weighs 100g

Total Shipment weighs 1000g (1kg) = Cost \$17.68

So, for each one divide the cost by the grams then multiply by the actual weight:

\$17.68/1000 = 0.01768

So,...

1G of Liquid Rubber weighs 500g  So... 500 x 0.01768 = \$8.84 Shipping Cost Per Item

1 Roll of Seam Tape weighs 250g So...250 x 0.01768 = \$4.42 Shipping Cost Per Item

1 Brush - \$3.99 weighs 150g So... 150 x 0.01768 = \$2.65 Shipping Cost Per Item

1 Disposable Gloves weighs 100g So...100 x 0.01768 = \$1.76 Shipping Cost Per Item

Essentially, if you know the weight of each product you'll know how much it costs to ship it and you'll know how much profit you have left. Obviously I've used completely incorrect weights for your products but I hope this helps you see how you go about working it out!

New Member
8 0 0

Thanks for the insight, sounds like it's the closest way to break it out.

New Member
1 0 0

Hi Ray!

Please get in touch. I may have something for you.

Best,

Hank

New Member
8 0 0

Hi Hank,

How would you like me to contact you?

Ray

Shopify Staff
31 0 2

Hello there!

Will here to help out with your cost of goods calculations.

A lot of what Gina P. is saying is a great way to calculate it manually. You can accomodate this by Exporting a lot of Orders in your Orders screen to see the break-down as well. It would be more broken down to Gross, Net, Taxes and Shipping for each Order as well for your calculations.

Additionally, if I might add to Gina's message, there are a few Apps on the App Store that also accomodate cost of goods calculations. If you're interested in something that might accomodate this, I'd checkout something such as Profiteer :)

I hope that helps you! If you need further assistance, definitely let us know. Thanks for taking the time to reach out to us.

Sincerely,

William L.
Guru @ Shopify

New Member
8 0 0

Thanks Will, I've sent them a message to see if their App takes into account shipping, discounts....

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