How Do I Track Profits In Shopify?
In this article, you will learn:
Are you a Shopify store owner looking for ways to track the profits of your online business? Don’t know where to begin? Don’t worry as in this article we will let you know some of the best profit tracking apps that get easily integrated with your Shopify store and show you accurate profit data of your business in real-time.
Tracking profits is very important for your e-commerce business. Profit is one of the critical metrics determining the success of your e-commerce business. It is calculated by subtracting expenses from the revenues generated by the online business. One of the critical reasons why many e-commerce businesses fail is because they do not track the amount of revenue they generate, the expenses they incur, and ultimately the profits they make out of their online businesses.
This results in businesses not knowing which products or services are performing well, the average order value of their customers, which customers contribute maximum to their e-commerce profits, business standing in terms of competition, and the areas that need improvement.
Before jumping to some of the best profit-tracking apps for your Shopify business and answering the query how do I track profits in Shopify, let’s first understand why is it important to track your Shopify profit in the first place.
Why Is It Important To Track Your Shopify Profit?
1. Know The Overall Health Of The Business
Profit is one of the key indicators of your e-commerce business. Tracking profits helps you know how much you are earning in a particular period, the sources of such earnings, and how you can use them effectively for growing your e-commerce business.
Not knowing if your e-commerce business is generating profits can make you make poor decisions, adding to the poor health of your business.
2. Identify Key Metrics For Informed Decisions
Many e-commerce businesses do not track sales, revenue, expenses, and overall profitability of their e-commerce business. This results in overlooking important financial data that may give key insights about their business performance, which can be used to make important strategic decisions.
For instance, tracking profitability for each business offering can help you identify products that have higher profit margins. As an e-commerce business, you can direct your marketing efforts toward selling more high-profit margin products and discontinue products that generate poor margins.
Likewise, calculating the Customer Lifetime Value figures using the revenue-order data can tell you if your pricing strategies are effective, whether marketing efforts are directed toward attracting the ideal customers, and identify opportunities to cross-sell or upsell.
3. Targeted Marketing Efforts Leading To Growth
If you are a Shopify store owner not tracking profits, you will never be able to identify products or customers that contribute maximum toward your business profitability. As a result, you may end up burning your marketing budget on promoting products with low-profit margins, leading to wasted marketing efforts, poor decision-making, and low profitability for your e-commerce business.
Thus, tracking your e-commerce profits can help you make sound business decisions, undertake targeted marketing efforts, and increase your business profitability.
4. Identify Areas That Need Your Attention
One of the major factors that impact e-commerce profit margins is the expenses incurred. For instance, sales and marketing expense is one of the major overhead costs of an e-commerce business. Not knowing which products give the highest profit margins or which customers spend the most on your business can make you spend your marketing budget on promoting low-margin products or acquiring customers relentlessly instead of channeling efforts toward retaining the existing ones.
This would mean higher expenses for your business leading to reduced profits, poor marketing strategies, and approaching people who may serve as one-time customers for your business. This is where tracking profitability can be of great help. It enables you to identify areas that need your attention, in this case, poor marketing strategies and poor customer loyalty which must be improvised.
Now that we know the importance of tracking Shopify profits, let’s have a look at some of the best profit-tracking applications that will help you track your Shopify profits on the go.
5 Profit Tracking Apps For Shopify: How Do I Track Profits In Shopify?
Do you want to know the factors that drive or curtail your Shopify profits? Want to have access to key profit metrics impacting your e-commerce business? If yes, then you must go for the BeProfit app, one of the best solutions out there for your E-commerce profit analysis.
Know your e-commerce expenses, the key factors that boost or hurt your business, and eventually the true profitability of your e-commerce business via the BeProfit application. This profit tracking application integrates seamlessly with your Shopify store, marketing channels, payment processors, accounting, and shipping accounts enabling you to track expenses, order value, profit by various parameters, live profit and loss, and key business metrics on the go with its simplified reports.
a. Detailed Order Analysis
Know how much you spend and how much you earn out of every order you fulfill. See the cost breakdown of each order and get a clear understanding of the factors that make your orders profitable.
b. Per Product Examination
Identify products that contribute to maximum profits and the ones that need price optimization via per-product profit analysis. Take into account expenses such as ad spend, COGS, returns, discounts, and fulfillment to know the per-product profitability, discover trends, and analyze each product’s impact on your e-commerce profitability.
c. Key Business Metrics
Get access to key metrics such as retention rate, customer lifetime value (CLTV), average order value, customer acquisition cost (CAC), return on ad spend (ROAS), etc, and analyze your business’s future profits. Also, see which discounts, payment, and shipping options perform well and analyze their impact on your business profitability.
d. Live Profit And Loss Data Via Dashboard
Have access to live profit and loss all in one place through the BeProfit easy-to-use dashboard. Track expenses, revenue, profit, discount, returns, etc on the go and see how they impact your bottom line. Identify cost-cutting and revenue-driving opportunities, see the trends in sales growth, and spot the products experiencing a drop in profits to make sound strategic decisions.
e. Access Detailed Reports
Sync your ad platforms, expenses, and order data to get detailed reports in your inbox. BeProfit works with platforms such as Google Ads, Facebook ads, Klaviyo, TikTok, Amazon, and Google Analytics, getting you access to ad spending and marketing data to generate custom reports that give you a 360-degree view of your marketing efforts and their impact on your bottom line.
f. Pricing Packages
BeProfit app comes in three packages including Basic, Pro, and Ultimate. Each one is priced as follows:
- Basic Plan – $20 per month
- Pro – $60 per month
- Ultimate – $120 per month
BeProfit has a 4.9-star rating on the Shopify App Store.
If you are looking for an affordable solution for tracking the profits of your E-commerce business, then SimplyCost is for you. Known for its accurate cost tracking, agile support team, and ability to handle a large number of SKUs, SimplyCost simplifies complex profit data and enables you to have profitability figures of your e-commerce business at your fingertips.
a. Automate Profit Calculation
Your e-commerce store gives you detailed sales revenue numbers but fails to serve you with the expense data. This is where SimplyCost comes in handy as it automates the profit calculation by factoring in your E-commerce expenses and doing the profit calculation for you. Additionally, you can even add custom one-off or recurring expenses to have accurate profit figures for your e-commerce store.
b. Know the Payment Gateway Processing Fee
Simply add your payment gateway pricing plans and SimplyCost will determine the payment gateway fee for every order. In fact, if you are using Shopify Payments or Paypal, SimplyCost will automatically calculate the payment gateway processing fee for you.
c. Determine Transaction Fee For Every Order
You need not worry if you are not using Shopify Payments. SimplyCost will automatically calculate the transaction fee for every order for your E-commerce business.
d. Generate Detailed Reports For Informed Decisions
You can generate multiple profit reports by product, vendor, variants, sales, and inventory and gain insights into products or variants that are most profitable or the time when your e-commerce store is making profits. This can help you make better business decisions.
e. Pull Ads Data From Ads Platform
Sync Ads platforms with SimplyCost and pull ad spend data to know the true profits of your e-commerce business. See the return on ad spend to understand the effectiveness of your marketing strategies and ad campaigns. SimplyCost works with ad platforms such as Facebook ads, Google ads, TikTok ads, and Pinterest ads.
f. Pricing Packages
SimplyCost app is a single-plan solution starting at $4.99 a month.
SimplyProfit has a 4.8-star rating on the Shopify App Store.
If you are seeking a profit-tracking app with an intuitive interface and one that gives you true net profit analysis in real-time, look no further than TrueProfit. A solution both for beginners and experienced merchants, TrueProfit serves you with the most accurate net profit analytics and metrics that matter with its net profit tracking dashboard, extensive custom expense tracking, COGS and shipping cost tracking, product analytics, and marketing attribution.
You can track key business metrics like CAC, ROAS, CLTV, etc, and make data-driven decisions that help you grow your e-commerce profitability.
a. Net Profit Tracking With Profit Dashboard
Never miss an opportunity due to lagged reports and error-prone spreadsheets with TrueProfit’s all-in-one profit analytics dashboard. Connect Shopify, ad, and shipping platforms to pull data from all data sources and get the most accurate profit numbers for your e-commerce business in real-time.
Have access to important business metrics like CAC, ROAS, LTV, average order value, etc, and tailor your marketing strategies, and ad spends, and improve your revenues and profit margins. If you have multiple Shopify stores, you can connect each of them to TrueProfit and get an overall view of your e-commerce business.
b. Extensive Expense Tracking
TrueProfit has an extensive expense tracking feature. This enables you to pull expense figures from various data points such as your Shopify store, ad, and shipping platforms so that you don’t miss any expense figures and get accurate profit numbers.
You can either pull COGS figures from your Shopify store or use advanced settings to set COGS by geography, quantity breaks, etc. You can even measure your marketing efforts by syncing various ad platforms like Google, Amazon, Facebook, Bing, TikTok, Snapchat, and Pinterest and track key metrics like ad revenue, ad spends, ROAS, etc, and tailor your marketing strategies accordingly.
Additionally, it helps you track shipping costs by various parameters such as location, quantity, product, etc by syncing your preferred shipping platforms. Finally, you can also track transaction fees and custom payments from any payment gateway like Stripe, Shopify Payments, and PayPal which not only automates and simplifies cost tracking but also gives you authentic real-time data you can rely on.
c. Product Level Analytics
With TrueProfit, you can have access to product-level profit numbers and, thus, identify the most profitable items. Having such data enables you to align your ad spending and undertake targeted marketing efforts by promoting the right products to the ideal customers. Likewise, you can improve pricing strategies and enhance price bundles for increased sales and profitability.
d. Marketing Attribution
TrueProfit also provides you with the ad level profit figures, giving you insights about the effectiveness of your ad spends, marketing channels that are doing well, and how well your marketing budget is being spent.
You can easily point out ad campaigns that are performing and boost such campaigns to reach the right target market for increased sales. Also, key metrics like CAC, LTV, repurchase rate, average order level, etc can help you focus on performing customer segments.
e. Pricing Packages
TrueProfit app has a solution for every merchant. It offers the following pricing plans:
- Basic – $25 per month
- Advanced – $50 per month
- Ultimate – $100 per month
- Enterprise – $200+ per month
TrueProfit has a 4.9-star rating on the Shopify App Store.
The Lifetimely LTV & Profit by AMP is a customer and P&L analytics application for D2C brands that is known for its in-depth insights and predictive features. It gives a detailed view of a brand’s past and existing customers – their buying behavior, percentage of returning customers, spending habits, CLTV, average order value, etc so that it can back its business decisions with data and also know how much its most valued customers are likely to spend on its business in the future.
Further, it also provides the D2C company with industry-specific benchmarks for metrics like customer acquisition cost (CAC), average order value (AOV), and repurchase rates so that you can know where you stand in terms of your competition. Are your AOVs and CACs competitive? Is your e-commerce business’s repurchase rate better than the competition? Knowing these metrics can help you identify areas of improvement and drive you to align your marketing efforts with areas that need your attention.
Also, you can have access to extensive P&L metrics and marketing campaign data at your fingertips with Lifetimely’s custom P&L dashboard.
a. Custom Dashboards For Financial Data On The Go
There’s no limit when it comes to the number of dashboards you can build. Yes, you can choose the metrics you want to track and let your team members monitor those KPIs.
You can also connect various marketing platforms such as Google ads, Google Analytics, Facebook ads, Recharge, TikTok, and Klaviyo with Lifetimely to have all your marketing data such as ad spend, ROAS, etc all in one place.
b. Industry-Specific Benchmarks To Know Your Standing
Know how your key performance indicators stand against your industry peers. Identify areas that need your attention, and set targets for up to 11 KPIs whose attainment will get you into the top-performing league of your industry peers.
Additionally, you can see how your business stands against your global peers.
c. Customer Behavior Analytics For Targeted Marketing Efforts
This is one of the best features Lifetimely offers. It serves you with several detailed customer behavior reports that analyze customer journeys, their buying patterns, their frequency of repurchasing, etc. from every aspect, which you can use to direct your marketing efforts in the right direction.
For instance, customer journey analysis tells you about the products your customers purchase, how frequently they purchase, the sequence in which they purchase, etc. You can use this information to come up with better ways of engaging with your customers by anticipating what products your customers will buy next and when.
Likewise, you can build a strong Monthly Recurring Revenue (MRR) by tracking various subscription metrics and comparing various metrics over time.
d. Predictive LTV Modeling For More Revenues and Profits
Get a complete and accurate understanding of the true value of your customers to undertake informed business decisions. Back your ad spend numbers with data and know precisely how much you need to spend on your ad campaigns.
Also, identify customers that will contribute the most and the least to your current and future profits and study their transaction data to know more about their buying patterns.
e. Seamless Integrations For Accurate Expense Tracking
Lifetimely connects with several platforms, ranging from marketing, and e-commerce platforms, to analytics, shipping, and subscription. This enables you to collect data from important data sources so that you don’t miss any expenses and come up with accurate profit numbers for your e-commerce business.
Some of the platforms that connect seamlessly with the Lifetimely app include Shopify, Google Analytics, Facebook ads, Google ads, Pinterest, TikTok ads, Snapchat ads, Microsoft ads, Klaviyo, ShipBob, ShipStation, etc.
f. Pricing Packages
With Lifetimely, you can choose the plan that offers features that meet your business needs. Its pricing plans include:
- Basic – $34 per month
- Pro- $75 per month
- Plus – $149 per month
Lifetimely has a 5-star rating on the Shopify App Store.
Sellerboard for Shopify is another profit analytics application that will give you in-depth profit analysis at your fingertips. Its Live Profit Dashboard gives you an easy-to-understand view of where your e-commerce business stands in terms of sales, returns, orders, ROAS, and net profit.
You can identify products that are performing well and see the cost breakdown in terms of ad spend, COGS, indirect expenses, etc giving you insights into healthy and unhealthy expenses.
Additionally, Sellboard for Shopify allows you to track ads running at various marketing platforms, enabling you to get accurate sales and profitability figures for your e-commerce business.
Finally, you can track key metrics like ROAS, CAC, LTV, etc, and use this information to direct your marketing efforts toward best-selling products ad the highest-paying customers.
a. Live Profit Dashboard For Real-Time Profit Analysis
Get a complete view of your business standing at a glance with Sellerboard’s Live Profit Dashboard. Get insights into key metrics like sales, orders, returns, etc with ‘Overview’, compare your business metrics with your industry peers, and identify areas that need your attention.
With product and cost breakdowns, know which products are bestsellers, which are the ones that generate lower profit margins, and if the costs incurred are generating returns.
b. COGS Management For Accurate Profit Numbers
Manage your COGS by entering the figures as amounts, percentages, batches, or products. Likewise, you can export/import COGS spreadsheets and even import COGS from your Shopify store.
c. Track Shipping Costs With Accuracy
Create single or multiple profiles of shipping based on weight, product, order price, goods sold, and shipping zones. You can even customize profiles for particular products and dedicate specific shipping costs to them.
d. Seamless Marketing Channels Integration For Accurate Profit Figures
Integrate multiple marketing channels like Google Ads, Facebook Ads, etc, and track profitability and expenses by products and accounts.
e. Accurate Ad Attribution Tracking
Owing to privacy features that block tracking via pixels and third-party cookies, Sellerboard takes advantage of the UTM parameters to know revenue from ads running on different marketing platforms. This gives you insights into how various ads are performing and enables you to calculate accurate sales and profit numbers. Additionally, live ad spend and ROAS numbers help you to improve your ads for higher profitability.
f. Monitor Payment Fees With Automatic Tracking
Keep track of all payment fees like gateway fees, online credit card rates, etc with automatic payment fee tracking.
g. Indirect Expense Tracking
Get accurate profit calculations by including one-time costs or recurring costs like office rents, etc.
h. Identify Trends With Key Metrics
Know KPIs such as revenues, net profit, ROAS, CLTV, CAC, etc, and identify trends to undertake smart business decisions. Likewise, having access to key metrics will help you know your most valuable customers, their buying behaviors, and order frequency, which can be used to retain them and predict their future buying preferences.
i. Pricing Packages
With Sellerboard, you can choose between the plans that best meet your requirements. Its pricing plans include:
- Standard- $9 per month
- Professional- $19 per month
- Business – $39 per month
- Enterprise – $79 per month
Sellerboard has a 5-star rating on the Shopify App Store.