I'm Alex, with the Shopify team!
Thanks for reaching out! That's a new feature that we've only just rolled out - that option allows you to track the cost of the goods that you're selling. There's more information on it in our guide right over here, under pricing!
This feature is entirely optional, and isn't a required field when you're creating your products - so you needn't worry about filling it out if you'd rather not. However, if you do choose to make use of it, once you've filled that in with the price of your product your profit margin will be calculated for you, like so:
If you're on the Shopify plan or higher, you're also able to produce reports to analyze your profit margins!
Hope that's helped! Please feel free to let me know, and you can always give us a call or start a live chat at any time. We're open 24/7 for your convenience and always happy to assist!
Alex | Shopify
Hi Alex, as the accountant for the Drift Record Shop I am delighted to see that entering the cost price is now available, a dream for stock/inventory management, i.e. getting that Closing Stock value for the annual accounts.
However I'm not sure that the margin calculation is correct?
Shopify - For each product that has a product cost entered, the margin (calculated as ([price - cost] / price) * 100) is shown on the product details page. For example, if your price is $50 and your cost is $30, then the margin (calculated as ([50 - 30] / 50) * 100) is 40%.
I think this falls down here in the UK because cost is net of VAT, but price includes VAT, or have I missed something?
Shopify - Price - The price that you're charging for the product. You set the currency on the General settings page. Click Charge taxes on this product if the product is taxable.
If the product has been noted as taxable, does the margin take this in to account, i.e. net selling price? This would be the correct way in my opinion.
I look forward to hearing from you,
Thanks and kind regards,
Thanks for your explanation on this feature. This has long been something that the platform has been missing and I'm sure this will be a very welcome addition.
For us this feature is fairly limited thoughas suppliers cost prices tend to flutuate depending on whether they're running promos or are clearing through inventory etc.
One suggestion I might make is to have an option to add the cost price of items in whenever we're receiving new stock through your transfers feature. The price of the new product coming in could then be averaged with the price of the previous stock received to give a true cost price and an exact margin read out.
The "cost per item" from the store admin UI is included as the field "cost" on inventory items. With the API, inventory items are not included as part of the response with either product or variant, so you'll need to make a separate call(s) to get them.
Really wish they made it easy to update.
Like, import update that only needs SKU and Cost. Of course, with the option to ignore 'Cost' on SKUs that don't exist in the Shopify store.
We use a separate inventory software that keeps track of the cost, but if we want to import into Shopify, we'd have to use a VLOOKUP. And anyone's who has used that function knows it's not entirely flawless.
Can customers see what you put in the “cost per item” Might be a silly question, but I just wanted to make sure before I start using it. Also, If i have the lowest Shopify plan, can I run a report showing me “my profit” instead of total sales? Can it show me what we made after what we paid for each item?