Is there a way to record your product costs in Shopify so you can see how much profit is being made? It seems silly to login and have a dashboard that records my revenue, but I cant see profit. Shopify gurus why isnt this an available option in the input screen of each product?
How do you other store owners record your profits / expenses? Looking for new options - Xero is way too expensive.
Check out Profiteer. But agree this should be built in and ideally integrated as part of a broader vendor section.
One of the main issues in implementing is what cost of goods to apply to each sale as will impact invnetory value in addition to profit. For instance, you buy 100 items at cost of $15. You sell 75 of them and reorder. When you reorder another 100 units the price went up to $16 per unit. Assume the new supply arrives before selling any more units. So now you have 125 units. When you sell your next unit what is the cost? FIFO rule would mean the next 25 units are at cost of $15 and then next 100 at $16. LIFO means your next 100 are at $16 and then next 25 at $15 unless you order more in between which resets the cost basis to the new cost. Avg Cost is exaclty that relative to number of units and each of the costs. And then what does the $15/$16 represent? wholesale price inlcuding costs of shipping, taxes, commissions, other?
Not so easy.
Hey Jason, I understand what you are saying about costs changing and having prices already in place from existing inventory, but its not that complex to work out and is more a guideline to how much profit is in each product. At the moment if someone was to put a product on sale in our admin panel, or give someone a discount code to use, they might not be 100% certain of the cost structure in place per product. It would work as a safeguard to stop any items ever being sold under their cost price. obviously the cost price isnt a true cost price of business as it wouldnt implicate expenses such as shopify fees, staff costs, transaction fees etc, but it would be a nice little feature to have in place and something Volusion and BigCommerce offer out of the box.
Agree. And indeed it being offered already by competitors is frustrating. It can be done, shopify just needs the will to do so. Profiteer is best current solution in my view as it integrates straight into shopify but necessarily as nicely as you eluded to above. Being able to input straight into product section and also then integrate into reports is all that is needed. Just have to keep pressing. It has been a topic on these forums for a year.
You have a very valid point over here and this is very basic accounting function every Shopify store owner asks for. But, unfortunately, you can't do it with Shopify. You need an accounting tool to do all this. You simply need to input product prices and you will get you COGS report ready. Using your COGS report numbers, you Profit and Loss report is generated. This gives you a fair idea of how much profit/loss are you making.
As far as accounting tool is concerned, If Xero is too expensive then you should give Quickbooks Online a try. Its basic plan is available in just $7.99, but, it has limited features. For more on pricing, check here: http://quickbooks.intuit.com/pricing/
While deciding on accounting tool, I am sure, you just don't want to consider pricing. There are many other factors as well. To check, what all factors and features, you should consider while choosing an accounting tool, check here: http://bit.ly/1IWWLOt
If you have more questions, feel free to write back. I'll be glad to assist you in your accounting tool search !!
It's a very valid point you have mentioned over here. This is one of the basic features all Shopify store owners ask for. But, unfortunately, at this moment it is not possible to do this in Shopify.
To do this, you need to have an accounting tool. In accounting tool, you simply need to enter the cost of your products and it will give you Cost of Goods Sold (COGS) report. Using the numbers of COGS reports, accounting tool also generates Profit and Loss report. This report helps you in tracking how much profit / loss you are making on your transactions.
As far as accounting tool is concerned, since Xero is expensive for you, you can give QuickBooks Online a try. Their basic plan starts at $7.99 with limited features. You can check more here: http://quickbooks.intuit.com/pricing/
While selecting an accounting tool, I am sure, you are not just considering pricing as the only factor. There are many others factors you need to check for. Here is the top features, yoo would want to have in your accounting tool: http://bit.ly/1IWWLOt
If you have any other questions, feel free to write back. I`ll be glad to help you in your search.
The problem is bigger than just a cost of goods field. Shopify lacks proper inventory management.
You should be able to create a purchase order and receipt your goods in Shopify. But you can't.
You have to use a third party app like stitchlabs - which works but it's buggy and painful (and expensive!). For example, a refund in Shopify doesn't fix inventory levels in Stitch. That's just one issue.
The lack of true inventory management is now the elephant in the room for Shopify. Sure, Shopify was a game changer in getting an online store up-and-running quickly. But the founders obviously had no idea about tracking inventory properly and knowing the cost of goods sold. It's business 101... and the world has moved on.
I still can't believe that with all the VC funding, proper inventory mangement hasn't yet been incorporated into Shopify. I know other Shopify users (who don't use an app like StitchLabs) who manually enter inventory into Shopify, which is just insane! Plus, they have no idea what their gross profit is because they have to go back to spreadsheets to get COGS ... which is too much hassle (and no way to run a business).
The company that invents a true all-in-one platform that includes: inventory management, online store and POS ... will absolutely crush the clicks-and-mortar space. Any devs out there who want to change the world?