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Profit Tracking calculates true profit by subtracting cost of goods sold (COGS) from revenue, giving you accurate ROI and profitability metrics per order, campaign, and customer.

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What It Does

Calculates Real Profit:
  • Profit = Revenue - COGS
  • Profit margin percentage
  • Profit by campaign, source, product
  • Profit ROAS (profit / ad spend)
Automatic for Shopify:
  • Reads product costs from Shopify
  • Syncs with every order
  • Updates metrics every 15 minutes
  • Works with historical orders

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How It Works

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Product Costs

Set product costs in Shopify Admin: 
Products → Select Product → Pricing
Cost per item: $45.00
DATALYR reads this cost and calculates profit automatically: 
Order Revenue: $149.00
Product Cost: $45.00
Profit: $104.00
Profit Margin: 69.8%
Each product variant can have its own cost.

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Profit Metrics

Dashboard Shows:
  • Shopify Profit (total for period)
  • Profit Margin (profit / revenue × 100)
  • Average Order Profit
  • Profit by campaign
  • Profit by product
Order-Level:
  • Revenue per order
  • COGS per order
  • Profit per order
  • Profit margin per order

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Use Cases

Campaign Profitability 
Campaign: summer_sale_2025
Revenue: $21,605
COGS: $6,482
Profit: $15,123
Profit ROAS: 1.60

Compare to other campaigns
Optimize for profit, not just revenue
Channel Comparison 
Google Ads: 64% margin, 1.92 profit ROAS
Meta Ads: 64% margin, 1.82 profit ROAS
Organic: 70% margin, no ad cost

Identify most profitable channels
Product Analysis 
Product A: 70% margin, high volume
Product B: 40% margin, low volume

Focus marketing on high-margin products
Adjust pricing or costs
Discount Impact 
Full price: 70% margin
20% off: 62% margin

Calculate true cost of discounts
Set minimum discount thresholds
Lifetime Profit 
Customer LTV: $520 profit across 5 orders
CAC target: $150 (based on 3.5x LTV)

Set acquisition cost targets based on profit

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Profit-Based Ad Optimization

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Send Profit to Ad Platforms

Configure Conversion Rules to send profit instead of revenue: Standard (Revenue): 
Conversion Rule: purchase
Value: order.total_price
Sends: $149.00 to Meta
Profit-Based: 
Conversion Rule: purchase
Value: profit
Sends: $104.00 to Meta
Result: Ad platforms optimize for profit, not revenue. Better bidding decisions.

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Profit ROAS Targets

Google Ads Example: 
Old target: 300% ROAS (based on revenue)
New target: 200% ROAS (based on profit)

More realistic targets
Better campaign performance

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Setup Requirements

Shopify Only:
  • Profit tracking requires Shopify integration
  • Other platforms (Stripe) don’t include COGS
  • Must set product costs in Shopify
Cost Data Required:
  • Products without costs show $0 COGS
  • Overestimates profit if costs missing
  • Always set costs before tracking
Historical Sync:
  • Backfills last 90 days on initial sync
  • New orders sync every 15 minutes
  • Cost changes don’t affect past orders

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Best Practices

Set Costs Immediately:
  • Add cost when creating product
  • Update costs when supplier prices change
  • Include all costs (manufacturing, packaging, shipping to warehouse)
Monitor Profit Trends:
  • Check profit margin weekly
  • Track profit ROAS by channel
  • Alert if margin drops below target
Use Profit for Decisions:
  • Set CAC based on profit LTV, not revenue
  • Optimize campaigns for profit ROAS
  • Focus on high-margin products
Account for All Costs:
  • Product manufacturing cost
  • Packaging and materials
  • Shipping to warehouse
  • Import duties and taxes

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Next Steps

Shopify Integration

Set up Shopify integration

Reports

View profit by attribution

Dashboard

Monitor profit metrics

Conversion Rules

Send profit to ad platforms