Reference
Ecommerce Profit Governance Glossary
Key terms and concepts in real-time profit protection, checkout margin enforcement, and ecommerce cost management for Shopify Plus merchants.
Cost Management
4 termsCost Management
Landed Cost
The total cost of a product delivered to the customer, including COGS, freight, duties, tariffs, insurance, and handling fees.
Read definitionCost Management
Dimensional Weight Pricing
A shipping pricing method that charges based on package volume rather than actual weight, often resulting in higher costs for bulky, lightweight products.
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Tariff Impact on Ecommerce
The effect of import duties and trade tariffs on ecommerce product costs, particularly the de minimis threshold changes affecting cross-border commerce.
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COGS Decay
The gradual divergence between the COGS data used in pricing/checkout systems and actual supplier costs, leading to margin miscalculation.
Read definitionMargin Analysis
3 termsMargin Analysis
Checkout Margin Erosion
The gradual loss of profit margin at checkout caused by unmonitored discount stacking, freight cost miscalculation, FX fluctuations, and stale COGS data.
Read definitionMargin Analysis
Margin Intelligence
Real-time visibility into per-order, per-SKU, and per-channel profitability using live data from ERP, logistics, and FX systems.
Read definitionMargin Analysis
Margin Collision
When multiple cost factors simultaneously erode margin on a single order — e.g., a deep discount, high freight zone, and unfavorable FX rate combining to make an order unprofitable.
Read definitionProfit Governance
2 termsProfit Governance
Profit Floor
The minimum gross margin required before an order is confirmed at checkout. Orders falling below the profit floor are blocked, modified, or redirected.
Read definitionProfit Governance
Profit Governance
A systematic framework for enforcing profitability rules across every transaction in real-time, ensuring no order ships below acceptable margin thresholds.
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