The main objective of the app is to workout your store profit automatically. In the simplest term, profit is calculated by subtracting product costs and expenses from revenues. While revenues related information can be obtained easily from your e-commerce store, the missing information are the the product costs and expenses. SimplyProfit fill this gap by letting you add these information.
In SimplyProfit, there are 2 types of costs associated with products (or more specifically variants):
- Product cost - This is your product’s current cost. When a new order is created, the app will attempt to assign a cost to each line item in the order by looking up the corresponding product cost. Changing the a product cost will not affect cost assigned to line items in past orders. It will only affect future/new orders from that point onwards.
- Line item cost - This is the cost assigned to line items in your sales orders. The app uses line item costs to calculate your profit.
You should keep your product costs up to date so that line item costs are properly assigned when an order is created.
Expenses in SimplyProfit are costs incurred from the normal day-to-day of running a business. Expenses include payroll, software subscriptions, stationaries, etc.
Check out our guide on how to: