Calculate your true profit margins including Shopify fees, payment processing, shipping, and returns. See gross vs. net margin with full COGS breakdown.
Landed COGS
$0.00
Unit cost + freight + duties
Gross Profit
$0.00
Selling price − landed COGS
Gross Margin
0.0%
Shopify Fees per Unit
$0.30
Payment processing + third-party fee
Net Profit
$-0.30
Selling price − all costs
Net Margin
0.0%
| Cost Component | Amount | % of Price |
|---|---|---|
| Unit Cost | $0.00 | 0.0% |
| Freight / Shipping to You | $0.00 | 0.0% |
| Duties & Taxes | $0.00 | 0.0% |
| Payment Processing | $0.30 | 0.0% |
| Shipping to Customer | $0.00 | 0.0% |
| Ad Spend per Unit | $0.00 | 0.0% |
| Return Cost (estimated) | $0.00 | 0.0% |
| Total Cost per Unit | $0.30 | 0.0% |
You just calculated this for a handful of SKUs. Organizely does it across your entire catalog, updates every time an order comes in, and tells you exactly when to act.
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Gross margin measures the profit after subtracting only the direct cost of goods (landed COGS), while net margin accounts for all costs including Shopify fees, payment processing, shipping to customer, ad spend, and returns. Net margin gives you a more accurate picture of your true profitability per unit.
Shopify charges a credit card processing fee on every order: 2.9% + $0.30 on Basic, 2.7% + $0.30 on Shopify, 2.5% + $0.30 on Advanced, and 2.15% + $0.30 on Plus. If you do not use Shopify Payments, an additional third-party transaction fee applies: 2% on Basic, 1% on Shopify, 0.6% on Advanced, and 0.2% on Plus.
A healthy gross margin for ecommerce is typically 50-70%, while a good net margin after all fees and costs is 10-20%. However, this varies by industry: fashion and beauty brands often target higher gross margins (60%+), while electronics may operate on thinner margins (20-30% gross).
Returns reduce your effective revenue because you lose the sale and often cannot recoup shipping costs. This calculator estimates the per-unit cost of returns by multiplying your selling price by your return rate percentage, giving you a realistic view of how returns erode margins.
Using Shopify Payments eliminates the additional third-party transaction fee (2% on Basic down to 0.2% on Plus), which can significantly improve your margins. Unless your third-party processor offers substantially lower card rates, Shopify Payments is usually the more cost-effective choice.