Profit Margin
How much of each dollar you actually keep after paying for everything. Revenue minus all costs, divided by revenue. A 30% margin means you keep $0.30 of every dollar that comes in.
Example
Your store does $20K in sales. After products, fees, refunds, shipping, apps — everything — you have $6K left. That's a 30% profit margin.
Why It Matters
Most Shopify merchants can tell you their revenue but not their actual margin. If you don't know your real profit margin, you're pricing blind — and a single bad month of hidden costs can wipe out what you thought was a profitable quarter.
Pro Tip
Run your numbers through a profit calculator that includes every cost — not just product cost. Most merchants discover their real margin is 5-10% lower than they thought.
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