eCommerce Profit Community
Turning a profit isn't always easy in e-commerce. We invite you to join BeProfit's community discussions where people ask, answer, and share their personal experiences building a profitable online business on Shopify and Wix.
Recent Questions
Why is my cost per conversion so high for my Facebook ads?
What are some of the contributing factors in costing for Facebook ads? I am trying to target a wide range of audiences in order to boost who views my ads. Could this be a contributing factor to why my cost per conversion is so high? Are there ways to reduce these costs while still maintaining my reach to different audiences?Asked a year ago
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How do you calculate gross margin without cost?
The gross margin formula seems to require the use of the profit value, and in order to get this value, costs need to be subtracted from revenue. Is it still possible to calculate the gross margin percentage if I do not have the value of the cost of goods sold? Perhaps there is an alternative formula where the cost of goods sold can be substituted for a different value? Asked a year ago
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Margin vs. markup: What's the difference?
When it comes to profit margin vs. markup, I know that they both involve the use of revenue and the cost of goods in order to do the calculations. What is confusing me, is which calculation requires which value. In which instance are we to use the selling price, and in which instance the retail price? Do the values of these calculations tell us different things or are there similarities? Asked a year ago
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Why is net profit margin always lower than gross profit margin?
I've come across something interesting after comparing my income statements over the last few months. For some reason, the net profit margin is always lower than the gross profit margin. Am I missing something for not understanding why these profit metrics are related this way? Is this merely a coincidence, or are there specific costs and expenses affecting these figures?Asked a year ago
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What percentage of the gross profit is net profit?
I'm not quite sure I understand the difference between gross profit and net profit. Is there a formula for gross profit and is it different to the formula for net profit? I heard that you can calculate the net profit using the gross profit margin, but I'm not that good with percentages and was hoping that there was a simpler way.Asked a year ago
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How do I calculate the best shipping costs for my Shopify store?
I'm not sure if I should be charging different shipping costs for international and local shipping. How do I determine what the shipping costs should be for my online store? Does the weight of the package impact the shipping costs or is it more about the dimensions of the package? Is there any shipping cost comparison I can refer to for a better idea of what will affect them?Asked a year ago
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How high should marketing expenses be for small businesses?
I'm in the process of starting a new store on Shopify where I'm going to be selling workout clothes like Gym Shark, and I was wondering what marketing expenses I should budget for. Is there an initial lump sum I should spend on marketing before my store opens, and after that, is there a certain percentage of my total sales revenue I should continue to spend on marketing? Does my business niche determine the amount of money I should spend on marketing or are they unrelated?Asked a year ago
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Is total revenue the same as gross profit?
I recently started an online store through Shopify and have run into a bit of confusion. I always thought that total revenue was different to gross profit, but now I've heard the term "net income" come up a few times and I'm not really sure what is what. Can anyone give me a basic explanation of total revenue, gross profit, and net income.Asked a year ago
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Main differences between Shopify vs Shopify+ in profit reporting?
I'm trying to keep track of my profit better and heard that there may be some differences between Shopify and Shopify plus. I have a medium e-commerce business and don't really know if I can afford a Shopify plus plan, but if Shopify plus can offer enhanced analytics reports then I might be willing to shell out the extra cash. Basically, is Shopify plus worth it as a slightly-above-medium sized business for better profit reporting?Asked a year ago
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How is Microsoft Excel used in business analytics?
I just feel like Excel is an outdated program and don't really see the uses for it in a modern business for analytics purposes. What kind of business analytics would benefit from the use of Microsoft Excel from a project management viewpoint?Asked a year ago
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