Cost types
The unit cost from your supplier is rarely what a sale costs you. These are the costs merchants add on top of it, how to turn each into a per-unit figure, and whether it belongs in the cost Shopify reports on.
- Unit cost · Supplier AIn Shopify's cost per item$21.40
- Packaging · Per unitIn Shopify's cost per item$1.20
- Pick and pack · Per unit, whole shopKept in Cogsy only$2.85
- Payment processing · 2.9% of priceKept in Cogsy only$1.97
- Packaging
How to work out packaging cost per unit for a Shopify product, the difference between product packaging and shipping packaging, and where each belongs.
- Inbound freight
How to turn a freight invoice into a per-unit cost for Shopify products, the three ways to allocate it across a mixed shipment, and a worked example.
- Import duties
How to work out import duty per unit for a Shopify product, which taxes count as cost and which are reclaimed, and how to record duty so a rate change is visible.
- Pick and pack
How to turn a 3PL's pick and pack fees into a per-unit cost, why the fee belongs in your margin but rarely in Shopify's cost per item, and how bundles change it.
- Payment processing fees
How to count card processing fees in your margin per product, as a percentage of price plus a fixed part, and why they stay out of Shopify's cost per item.
- Outbound shipping
When you offer free or subsidised shipping, the postage is a cost of the sale. How to estimate it per unit and keep it out of the cost of goods.
- Inserts and labels
Thank-you cards, care leaflets, barcode labels and hang tags add cents to every unit. How to cost them and decide which belong in the product's cost.
- Returns allowance
Returns cost return postage, handling and written-off stock. How to turn a product's return rate into a per-unit or percentage allowance so margins reflect it.
Set a cost once, override it where it differs
Shop · Every variant
$2.85
Product · Oversized quilt, all sizes
$4.50Used
Variant · Oversized quilt, King
Not set
The King has no amount of its own, so it takes the product's $4.50. Every other product in the shop still gets $2.85.
Start with the costs Shopify already has.
Install the app, sync your catalog and see which variants are missing a cost.