Method · Cost structure
Which costs should you deduct from Shopify revenue?
A profit calculation is only as reliable as the cost list behind it.
- Updated
- July 23, 2026
- Reading time
- 7 min
Short answer
Short answer
At minimum, reconcile revenue with product costs, shipping borne by the store, payment fees, relevant taxes, ad spend and operating expenses assigned to the period.
Key points
- Separate variable costs, fixed costs and cash flow.
- Assign each cost to the correct period and currency.
- Document assumptions when data is unavailable.
Costs tied to each order
Variable costs include the product, supplier shipping, packaging, shipping subsidy, payment fees and relevant taxes.
Record them by variant and transaction when possible; a global average is an assumption.
- COGS by product or variant.
- Shipping, packaging and transaction fees.
- Discounts, returns and observed refunds.
Ads, fixed expenses and period
Ad spend must cover the same window as sales. Add subscriptions and fixed costs for a broader operating view.
Do not confuse management reporting, cash flow and statutory accounts.
- Align ads, sales and exchange rates.
- Separate recurring and exceptional expenses.
- Reconcile management reporting with accounting.
Sources and method
External definitions link to primary sources. Statements about Scaliente reflect behavior verified in the product.
From theory to your numbers
Bring store costs together
Scaliente reconciles available cost categories and keeps configured assumptions visible.
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