Install

How to cost a bundle in Shopify

A bundle's cost is the sum of its components' costs times their quantities, plus anything that belongs to the bundle itself. Shopify documents how a bundle's price and inventory work and says nothing about its cost, so check what your own reports do.

Updated

  • Candle, Fig

    CN-FIG

    2 × $4.10 = $8.20

  • Holder, Brass

    HD-BRS

    1 × $6.75 = $6.75

Gift set

Unit cost, summed from its parts

$14.95

Packaging and pick and pack are the set's own and are charged once.

A gift set costed from its parts. Change the candle's cost and the set's cost follows; remove it and the set has no cost at all.

Work out the cost

bundle cost = sum of (component cost × quantity) + bundle-level costs

Component Quantity Cost each Line
Candle, Fig 2 $4.10 $8.20
Holder, Brass 1 $6.75 $6.75
Gift box 1 $1.60 $1.60
Bundle cost $16.55

At a bundle price of $42.00 the margin is 60.6%. Sold separately at $16.00 and $18.00, the same items would bring $50.00 at a 70.1% margin on their own $14.95 of cost. The bundle trades margin for a larger order, and you can only see that trade with the cost in front of you.

What Shopify documents

For fixed bundles, the kind created with the Shopify Bundles app:

  • the bundle’s price is set on the bundle itself and does not change when a component’s price changes;
  • the bundle’s inventory is determined by its components;
  • an order stores the components as lines grouped under the bundle;
  • discounts are calculated on the bundle and allocated to the components;
  • sales reporting is at the component level.

Nothing in these pages covers cost. Component-level reporting suggests the components’ costs are what profit reports use, but Shopify does not state it.

Test it in your store

  1. Make sure every component has a cost per item.
  2. Place one test order for the bundle.
  3. Open the Profit margin by order report and find the order.
  4. Check which lines appear and what cost each carries.

If the components appear with their costs, your bundle is costed correctly as long as the components are. If the order is missing, something on it had no cost at the time of sale.

What goes wrong

  • A component has no cost. Shopify reports profit only for variants with a cost at the time of sale, so part of the bundle drops out.
  • A cost typed on the bundle goes stale. It was the right total on the day and nobody updated it when the candle went up.
  • Packaging that exists only for the bundle is in nobody’s cost. The gift box belongs to the set, not to the candle.
  • Bundles made by other apps work differently. Some sell the bundle as its own product with its own stock and its own cost field to maintain.

Keeping it current

Cogsy costs a bundle from its components: Shopify’s fixed bundles are read on every sync, you can define your own by SKU, and a change in a component’s cost changes the bundle’s. Costs that belong to the bundle, such as the gift box, are set on the bundle and counted once. If any component has no cost, the bundle is flagged as missing one.

Questions

Does Shopify calculate a bundle's cost from its components?
Shopify's documentation does not say. It states that a bundle's price is set on the bundle and its inventory comes from the components, and that sales are reported at the component level. Cost is not mentioned.
Should I enter a cost per item on the bundle product?
Test first. If your profit reports show a bundle sale under its components, the components' costs are what matter and a cost on the bundle could be redundant. The test below takes one order.
Does a discount on the bundle change its cost?
No. A bundle discount lowers the revenue, and Shopify allocates it across the components. The cost of the items is unchanged, so the margin on each is lower.

Sources

Related

  • Feature

    Bundle costing

    A bundle costs the sum of its components. Shopify's fixed bundles are read on every sync, and you can define your own.

  • Glossary

    Product bundle

    A bundle is several products sold together as one item. The types of bundle, how to work out a bundle's cost from its components, and the common mistakes.

  • Guide

    Why products are missing from Shopify profit reports, and how to find those with no cost

    Shopify leaves variants with no cost out of profit reports. How to see how much revenue is affected, and three ways to list every variant with no cost per item.

  • Cost type

    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.

Start with the costs Shopify already has.

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