Shopify Profit Leak Finder
Find exactly where your Shopify profit is leaking. Calculate your true net margin after COGS, ad spend, app costs, transaction fees, and refunds.
Finding Your True Shopify Net Margin
Most Shopify stores know their gross revenue. Far fewer know their true net margin after every cost is accounted for. The hidden profit leaks are typically apps (often 2–5% of revenue), refund processing costs (1–4%), and payment fees (2–3.5%). Together these can consume 6–12% of revenue before you factor in COGS or ad spend.
The App Cost Benchmark
A healthy Shopify app budget is under 1% of monthly revenue. A store doing £40,000/month should spend under £400/month on apps. Many stores spend £600–£1,000 — 1.5–2.5% of revenue — on apps that partially or fully overlap in functionality. The App Stack Auditor identifies exactly which apps to cut or replace.
Automating Real-Time P&L Visibility
The Shopify P&L Automation tool uses a Make.com webhook to populate a Google Sheets dashboard with every order's revenue, COGS, ad spend allocation, and net profit in real time. No BI tool, no paid app, no manual CSV exports. Free forever on Make.com's free tier.
// COMMON_QUESTIONS
What is a good net margin for a Shopify store?▼
For DTC ecommerce, a net margin (after COGS, ad spend, fees, and overheads) of 15–25% is considered healthy. Margins below 10% indicate profit leaks that need addressing. Margins above 30% are excellent and often indicate strong brand positioning or low customer acquisition costs.
How do I reduce Shopify payment processing fees?▼
Using Shopify Payments reduces total fees compared to third-party processors because Shopify waives its additional transaction fee. For high-volume stores, negotiating directly with payment processors or exploring B2B payment options can reduce fees further. The single biggest fee reduction for most stores is switching from a third-party processor to Shopify Payments if you're in a supported country.
What is a healthy refund rate for Shopify?▼
Under 5% refund rate is typical for physical goods DTC. Fashion brands often run higher (8–12%) due to sizing issues. Electronics and tech brands should target under 3%. Above 10% for any physical product category suggests product quality, description accuracy, or expectation-setting issues that will compound over time.
Set Up Free P&L Automation
Free tool. No account. Instant results.
Set Up Free P&L Automation →