1. Average Order Value (AOV) & Product COGS

Cart Economics

Average Order Value (AOV) ($)

Total checkout amount paid by customer

Product COGS (Supplier Cost) ($)

Unit wholesale cost from AliExpress / CJ / Factory

2. Paid Ad Spend (CPA) & Shipping

Marketing & Courier

Ad Acquisition Cost (CPA) ($)

Average ad spend per purchase (Meta/TikTok/Google)

Fulfillment & Shipping Cost ($)

Postage fee paid by merchant

3. Shopify Payments & Monthly App Overhead

Fees & Subscriptions

Processing Rate (%)

2.9% Basic, 2.6% Shopify

Fixed Fee ($)

Standard $0.30 per order

Monthly Apps Cost ($)

Loox, Klaviyo, PageFly, etc.

Monthly Store Volume:

Orders completed per month

orders / mo

Net Profit Per Order Great Margin 🔥

$22.56 / order

Net Profit Margin 34.7%

Monthly Clean Profit $5,640.00

🎯 Ad Scaling Guardrails

Meta / TikTok targets

Break-even ROAS 1.69x

Minimum ad ROAS before losing money

Max Allowable CPA $38.56

Ceiling bid for customer acquisition

📊 Shopify Revenue Breakdown

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How to Calculate True Shopify Profit Margins (The Hidden Fees)

Running a Shopify store looks straightforward on paper: Selling Price minus Product Cost = Profit. In reality, multiple transaction percentages and software overhead silently erode your gross margins.

Shopify Payments vs 3rd Party Gateways

If you use Shopify Payments, you only pay credit card processing (2.9% + 30¢ on Basic). If you use external gateways, Shopify adds up to 2.0% extra transaction fees.

App Overhead Amortization

Monthly app subscriptions ($50 to $200/mo) must be divided across your total monthly orders. At 100 orders/mo, $100 in apps adds $1.00 of hidden cost to every unit shipped.

📊

Free E-Com & Ads Performance Tracker (Excel)

Automated formulas for Meta, TikTok & Google ROAS, COGS, and daily net profit.

XLSX