Product profitability

Which products actually make money once product, shipping, fees and ad spend are counted.

Which products actually make money once product, shipping, fees and ad spend are counted.

What it is

Product profitability is the profit each product earns after the costs tied to selling it: cost of goods, shipping, fees, refunds and the ad spend that promoted it. Best-sellers and best earners are often different products.

Product profitability is the profit each product earns after the costs tied to selling it: cost of goods, shipping, fees, refunds and the ad spend that promoted it. Best-sellers and best earners are often different products.

Product profitability is the profit each product earns after the costs tied to selling it: cost of goods, shipping, fees, refunds and the ad spend that promoted it. Best-sellers and best earners are often different products.

The formula

Formula
Product profit = Product net sales − COGS − shipping − fees − refunds − allocated ad spend

How to read it

Sort by profit, not revenue, and read the bottom of the list as carefully as the top. A product with high sales and thin profit may need a price change, a cheaper supplier or less ad budget. A quiet product with strong margin may deserve more.

Sort by profit, not revenue, and read the bottom of the list as carefully as the top. A product with high sales and thin profit may need a price change, a cheaper supplier or less ad budget. A quiet product with strong margin may deserve more.

Sort by profit, not revenue, and read the bottom of the list as carefully as the top. A product with high sales and thin profit may need a price change, a cheaper supplier or less ad budget. A quiet product with strong margin may deserve more.

How Cifra shows it

Cifra's product profitability report combines Shopify sales with your costs and ad spend to show profit by product, refreshed every 15 minutes. Ask in Claude or ChatGPT which products lost money last month.

Cifra's product profitability report combines Shopify sales with your costs and ad spend to show profit by product, refreshed every 15 minutes. Ask in Claude or ChatGPT which products lost money last month.

Cifra's product profitability report combines Shopify sales with your costs and ad spend to show profit by product, refreshed every 15 minutes. Ask in Claude or ChatGPT which products lost money last month.