> ## Documentation Index > Fetch the complete documentation index at: https://docs.datalyr.com/llms.txt > Use this file to discover all available pages before exploring further. # Profit Tracking > Track profit by accounting for cost of goods sold (COGS) in Shopify orders 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. ## 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 ## How It Works ### 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. ### 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 ## 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 ``` ## Profit-Based Ad Optimization ### 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. ### 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 ``` ## 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 ## 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 ## Next Steps Set up Shopify integration View profit by attribution Monitor profit metrics Send profit to ad platforms