Frequently Asked Questions
Real profit is a profit tracker tool/App that helps you organize, Analyze & visualize all of your business's Expenses, Orders generated & revenue in one place to understand exactly how much money your eCommerce business is making.
The Real profit dashboard is split into 4 main sections.
- Profit Analytics: Your business's revenue, Total cost, Net Profit, Margin, Order summary + Spend detail included in this section. With all this information on your screen, you’ll be able to see which areas of your store need optimizing in order to improve your profitability. cost of goods sold (COGS), shipping & handling, transaction fees, and refunds.
- Profits: lets you track your business's gross and net profits at a glance and monitor your store's performance over time.
- Custom Spend: Add/edit and track all expenses of your business to determine Real profit.
- Transaction Fee: Set payment gateway with a specific charge as required Order Summary: Get complete and overall information of the number of items, respective revenue, Shipping charge, Total COGS transaction fees, Handling fees, Net Profit, Net Margin.
- Gross sales: Gross sales is an addition of all sales receipts
(Note: discounts, returns, and allowances not includes in the gross sales)
- Revenue: Gross sales minus Refund minus the discount (Gross sales - all refund and discount )
- Total Cost: COGS + Handling fees +Transaction fees + Custom spend
- Net Profit: Revenue - Total cost - Taxes
- Net Margin: Net Profit / Revenue
- Avg. Order Value: Revenu / Total orders
- Avg. Order Profit: Net Profit / Total orders
- Shipping Charge: What customers paid for shipping in Shopify. Included in sales and revenue.
It’s simple, your cost of goods sold, or COGS is how much it costs you to produce or acquire the products you sell. This amount includes the cost of the materials and labor directly used to create a good or if you purchase inventory/products from a third party then COGS will be how the product costs you.
We have 2 ways to estimate/add COGS.
- Estimate COGS through the auto slider.
- Enter COGS manually.
- Estimate COGS through the auto slider: You can directly set COGS through the slider which will apply to each and every product.
- Enter COGS manually: Go to Dashboard --> COGS --> Product List. You'll see a list of your products in-store. Simply enter the product costs in the COGS column. This value will be applied to all variants of the same product.
Handling Fee refers to the types of costs associated with preparing and transporting inventory. Mostly, the cost cover expenses related to order fulfillment such as shipment and packaging cost. Calculation: [Average number of minutes worked to package an item / 60] x hourly rate. For example, 15 minutes / 60 = 0.25; 0.25 x $10 per hour = $2.50. Those are your handling fees
Transaction Fees is a type of extra charge when the client needs to pay every moment it processes an electronic/online payment. Transaction Fees can vary among the services.
In the eCommerce business, the Payment gateway is the key component to allow your customer to do online payment and that gateways also charge to provide us transaction services.
Custom Spends includes rents, salary, Shopify plan, taxes, etc.
You can add it in a simple way: Go to Dashboard--> Custom Spend Menu--> Click on the New Spend--> Fill Details and Create.
Simply go to your Apps screen in your Shopify store and delete the app.