Product restock with Lower Product Cost

[GuavaJammies]

I have a product that exists in my shopify store. I just placed an order with my supplier for a much higher quantity of that product than before, and so naturally my per unit cost went down. In shopify, should I change the unit cost for the product to the new unit cost? Or leave it as the old unit cost? I'm assuming once I change the unit cost it will affect all of my reports, and I don't want to have misleading data. I know my profit margin will be much higher with the new unit cost. Since I've already sold many units at the old unit cost, changing the unit cost now will be misleading for the past sales. Please advise! 

[rajweb]

Hey @GuavaJammies ,

Thank you for reaching out. I understand your concern about the impact of changing your unit cost in Shopify, especially since you’ve already made sales at the previous price. Here's the best approach:

1. Keep the Old Unit Cost for Past Sales: To maintain accurate historical data and profit margins, I recommend leaving the old unit cost unchanged for the products you've already sold. Changing this could distort your past reports.

2. Update the Unit Cost for Future Sales: You can update the unit cost for future inventory purchases to reflect the new, lower cost. This will give you a more accurate profit margin going forward without affecting previous transactions.

3. Track Costs Separately: If you'd like a more detailed view of both old and new costs, consider using an inventory management tool or custom fields to track these separately. Some apps can help with this.

By following this strategy, you'll keep your historical data intact while benefiting from the improved margins on future sales. Let me know if you'd like assistance with implementing this or if you have any other questions.

Best regards,

Rajat 

[GuavaJammies]

Thank you for the reply. How do you change the unit cost for the new inventory without changing the unit cost of the past sales without creating a new variant or a new product?

[rajweb · Accepted solution]

@GuavaJammies ,

You're welcome! Here's how you can update the unit cost for your new inventory in Shopify without affecting the unit cost of past sales or creating a new product/variant:

1. Update the Unit Cost for Future Inventory:

-Go to your Shopify Admin.

-Navigate to Products and find the product you want to update.

-Under the Inventory section of the product page, click Edit (the pencil icon) next to the product variant you want to update.

-In the Cost per item field, update the unit cost to reflect the new, lower price for the bulk order.

This change will only apply to future sales and will not affect past sales data because Shopify's reports are based on the cost at the time of the sale, not the current inventory cost.

2. Tracking Inventory by Batch (Optional): If you want to track the different costs for inventory from different batches (older inventory vs. new bulk order) for more precise reporting, you can use Shopify apps like Stocky or TradeGecko that allow you to manage inventory by batches. However, this is an additional step and not required unless you need to track multiple costs for the same product.

3. No Need for a New Variant: The unit cost change will only impact new orders after the update, so there is no need to create a new variant or product. The old inventory and past sales will still be associated with the previous cost, ensuring your historical data remains accurate.

By following these steps, you can successfully update the unit cost for future sales without disrupting past data or needing to create a new variant.

If you have any other requirements or need further assistance in the future, please feel free to contact me via email anytime—I'd be happy to help!

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