I offer free shipping but where that cost shows in the COG reporting?

17 0 4

Hi there, 


I feel a lot of people had this problem too but I couldn't find a open thread. 
So, I offer Domestic Free shipping (it's a must nowadays) so except international order, I absorb that cost and I only see "Shipping" within Sales as the consumer pay for that shipment. Now I have 2 questions:
1- For domestic orders (free shipping) - how and where should I reflect that shipping cost I'm absorbing because I would like it to be shown as COG. 
Should I add that shipping cost within each Product > Pricing > Cost per item? or is there a way I can see how much I've spent on shipping labels each month and add that cost to my total COG for the month?
2- For international orders? Where can I see the difference between how much the customer paid and how much I paid? I'm saying that because for some countries I set up -15% and for others +15% depending on what market is more attractive for my business. 

Any help or suggestion us much appreciated. I feel I have been doing wrong in my reporting :-) 


Thanks in advance, 

Digital wellness with a human soul
New Member
3 0 0

Hi did you ever get the answer to this? I have a similar issue. 

Except my issue is, for example, I have a product that costs $20 from the supplier. I have made a deal with the supplier to pay an extra $5 for it to be personalised and the shipping costs are $40 so the total product cost will be $65. I intend to give customers Free shipping, so when I price my product to sell I may price is at $105 meaning the profit is $40. When an order goes through Shopify though it will only take into account the $20 product cost so it will look like I profit $85 on reports when in fact I’m profiting $40. For finance reporting purposes I want to know if there is anyway I can add these costs to the product so my reports show what my actual profit is. I even wonder if there is there a Shopify app that I can use that can  take these extra costs into account. 

I can’t add the Shipping fee and personalised fee as a handling fee as the customers will see it and $45 will be an excessive amount for handling fee when in fact it's for shipping and personalised fee. Also if I added the fee as a handling fee then my product with appear $45 cheaper then what it is so when they go to buy they will be put  off.