Important costs settings like: Shipping cost, Payment processing fee, Order processing fee etc.
Boy, is this one important!
If at some point you have created a product in ProfitMetrics and not entered in the cost price, we will use the "default markup” to help you calculate profitability. This way, your profit shown will be at least what you would earn from your store’s overall average profit margin.
Here is an example:
A margin of 200% on an item that costs you 100 DKK will equal a sales price of 300 DKK ex vat. If you wish to instead input a multiplier for the sales price, you may do so in the field below.
Cost for Delivery
To maximize profit on your ad spend, you will need to have a precise gross profit figure to send to Google Analytics and Facebook Ads Manager. Your shipping cost is the biggest and most important expense after your cost of goods. It’s even more important if you have a free shipping threshold.
Fill out an average shipping cost per order.
Note: We will get a shipping calculator for different carriers later, but this is still in the pipeline.
Payment Processing Fee
The payment processing fee has a huge impact on your profit.
Here’s an example. Let’s say you pay 2% of an item’s purchase price, on average, on payment processing fees. You earn 33% in profit per item, including the cost of goods, tax and shipping — but excluding the processing fee.
That 2% in processing fees will be actually eat up 6% of your gross profit. So be sure to fill out your average payment processing fee to get your true gross profit inside Google Analytics and Facebook Ads Manager.
Extra cost per order
Maybe this feels like it’s too far into the nitty gritty. But you don't want to spend money on advertisements you think are profitable but aren’t — so let’s do this right.
Use this field for an average fixed fee per order. This could be fulfillment costs like packaging, tape or even printing labels. The small things make a big difference in terms of your profit.