Net Profit
What's left after every single expense is paid — products, refunds, payment fees, shipping, Shopify plan, apps, taxes. This is the number that matters. If it's negative, you're losing money regardless of what your revenue looks like.
Example
$20K revenue minus $6K products minus $1K refunds minus $580 in payment fees minus $400 shipping minus $79 Shopify plan = $11,941 net profit.
Why It Matters
This is the number that determines whether your store survives. You can have impressive revenue, growing orders, and great reviews — and still be losing money if your net profit is negative. Most merchants never calculate this because they only look at Shopify's top-line dashboard.
Pro Tip
At the end of each month, subtract every single expense from your revenue — products, refunds, payment fees, shipping, apps, Shopify plan, ad spend. If that number isn't positive, something in your cost structure has to change immediately.
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