Margin
22 articles tagged with “Margin”
Why is Shopify charging me more for a label than it should?
Shopify adds no markup to labels. The overage is dimensional weight and carrier re-rates that back-bill to a later bill. Here is how to find and fix it.
Am I losing money offering free shipping?
You're losing money on free shipping only when your average order value sits below your break-even AOV. Compute that number, then decide.
Why are returns costing me double the original shipping?
Return shipping cost runs to roughly double your original label because the inbound label is the smallest part. Processing, lost payment fees, and resale markdown do most of the damage.
What return rate starts destroying my margin?
Your return rate margin break-even is the point where returns erase all profit. Here is the formula, a worked example on a $98 dress, and how to find your own number.
How do I tell which SKUs lose money after returns are factored in?
A return-adjusted per-SKU margin formula that reveals which products lose money once their own return rate is applied, not your store average.
Why am I suddenly covered in fraudulent chargebacks?
A sudden increase in chargebacks usually traces to one of five causes. This post separates demand-side from self-inflicted ones and costs the wave on $120 earbuds.
What does a chargeback actually cost me once fees are added?
A chargeback costs far more than its fee. On a $245 order the all-in loss is $402.41, or 1.64x the sale, and the dispute fee is the smallest line.
How do I know my true landed cost per order?
A complete per-order landed cost formula updated for the post-de-minimis world, with duty on low-value parcels, the merchandise processing fee, and the US FOB-basis nuance.
Do I need to update my pricing every time tariff rules change?
You do not need to reprice on every tariff rule change. Reprice only when a duty shift pushes contribution margin below your floor, and here is the trigger rule, costed on a $40 planter.
Why does Shopify only show revenue and not net margin?
Shopify reports revenue and at best gross profit, never Shopify net margin, because it cannot see payment fees, shipping, returns, or ad spend. Here is the gap, costed on a $30 candle.
How do I calculate my real net margin including every hidden cost?
Calculate net margin in ecommerce by subtracting COGS, payment fees, blended shipping, a returns provision, and variable marketing from revenue, then dividing by revenue.
How do I track margin by SKU, channel, and customer?
Track margin by SKU and channel by computing contribution margin per cut and allocating channel fees and acquisition cost, so blended store margin stops hiding the losers.
Which of my orders are unprofitable right now?
An order-level contribution flag that recomputes profit on every order and surfaces the discount-plus-freight stack that average-order-value reporting hides.
How do I see margin erosion before it hits my P&L?
Margin erosion shows up in four leading indicators weeks before month-end. Track per-order contribution, discount creep, shipping drift, and returns to catch it early.
Is excessive discounting wiping out my profit?
Excessive discounting wipes out profit when a price cut shrinks contribution far faster than it shrinks price. See the discount-to-margin multiplier worked on an $899 mattress.
How do I stop a discount stack from making an order unprofitable?
Stop a discount stack from going unprofitable by setting a per-order margin floor equal to your contribution before discount, then blocking any combined offer past it.
Why is my subscription margin shrinking over time?
Subscription margin shrinks from three stacked forces, acquisition discounts, cost creep, and churn that strands fixed acquisition cost. Here is how to decompose and fix yours.
My AOV is too low to cover per-order costs, what do I do?
Low AOV ecommerce fix: compute the minimum viable AOV from your per-order fixed costs, then raise order value above it with bundles, minimums, and a free-shipping threshold.
Why did a refund or chargeback cost me more than the original sale because of exchange rates?
A foreign exchange refund loss happens because the refund converts at a later, worse rate while the original conversion and processing fees are never returned.
How does currency conversion affect what I actually keep?
Currency conversion fees take a markup on top of the mid-market rate plus a presentment-to-payout spread, costing a cross-border order a full margin point or more.
Real-Time Checkout Margin Enforcement for Shopify Plus
Your analytics know exactly which orders lost money. They find out three weeks too late. Here is how checkout-time enforcement stops the bleed before it happens.
Shopify Scripts Replacement for Margin Rules (2026)
Shopify Scripts turns off June 30, 2026. If your margin or discount logic lives in Ruby, here is what breaks and how to replace it, with or without a developer.