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One product, two suppliers, two costs: handling it in Shopify

Shopify has one cost field per variant and no way to attach a cost to a supplier. When you buy the same product at two prices, you either pick one number, blend them, split the product, or keep the supplier costs in a separate record.

Updated

Why it comes up

  • a main supplier and a backup for when they are out of stock;
  • a domestic source for speed and an overseas one for price;
  • a wholesaler for small top-ups and the manufacturer for full orders.

The units are identical on the shelf and were bought at different prices.

Option 1: pick one

Put the main supplier’s cost in Shopify and ignore the other.

Simple, and accurate enough if the second supplier is occasional. The margin is wrong on every unit that came from the other source, and the second price lives in someone’s inbox.

Option 2: blend them

Use a weighted average: 300 units at $21.40 and 100 at $23.10 average $21.83.

This is the most accurate single number when stock is mixed. It has to be recalculated whenever the mix changes, and afterwards neither supplier’s actual price is recorded anywhere in Shopify.

Option 3: split the variant

Create a separate variant or product for each source.

Each then has its own cost and stock. Customers see two listings for one thing, inventory is divided, and reports split the product’s sales. It only makes sense when the items really differ.

Option 4: keep supplier costs in a separate record

Leave one cost in Shopify and keep each supplier’s price somewhere that holds more than one: a spreadsheet, your purchase orders, or an app.

In Shopify’s own purchase orders, each line has its own cost and you can reuse a cost from an earlier order, so a rough per-supplier record builds up there. It does not flow into cost per item.

In Cogsy every cost has a source. A variant can hold a cost from each supplier, each with its own dated history, and you choose which source is in use. That one drives the margin and the figure written to Shopify; the others stay beside it for comparison.

Choosing

Your situation Option
Second supplier is rare Pick one
Stock from both is mixed and volumes are steady Blend
The items differ in a way customers care about Split
You compare quotes, switch sources or want each price on record Separate record

Questions

Can a Shopify variant have a cost per supplier?
Not in the cost per item field, which is a single value per variant. Purchase orders record a cost per order line, which can differ by supplier, but that does not change the variant's cost.
Which cost should Shopify hold if I buy from two suppliers?
The one that best describes the stock you are selling. That is the main supplier's cost if they provide most of it, or a weighted average if stock from both is mixed on the shelf.
Can I average two suppliers' costs in Cogsy?
Cogsy uses one source's cost at a time and does not compute an average. If you cost on an average, calculate it and record it as its own source.

Sources

Related

  • Feature

    More than one supplier

    Keep a cost from each supplier, from Shopify and from your imports side by side, and choose which one is active.

  • Glossary

    Weighted average cost

    Weighted average cost blends the cost of stock on hand with the cost of new stock, by quantity. The formula, a worked example, and how it compares with FIFO.

  • Guide

    Do Shopify purchase orders update cost per item?

    No. Receiving a purchase order in Shopify does not change a variant's cost per item. What purchase orders do with cost, and how to carry a new price through.

  • Glossary

    Unit cost

    Unit cost is what one unit of a product costs you to buy or make. How to calculate it for bought and made goods, and what belongs in it.

Start with the costs Shopify already has.

Install the app, sync your catalog and see which variants are missing a cost.