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Profit Margin Calculator Shopify

by @phheng

Shopify/DTC profit margin calculator for sellers. Calculate cost breakdowns including ad spend, CAC, payment processing fees, and 3PL costs. Includes LTV/CAC...

Versionv0.1.0
TERMINAL
clawhub install profit-margin-calculator-shopify

πŸ“– About This Skill


name: profit-margin-calculator-shopify version: 1.0.0 description: "Shopify/DTC profit margin calculator for sellers. Calculate cost breakdowns including ad spend, CAC, payment processing fees, and 3PL costs. Includes LTV/CAC analysis and DTC-specific benchmarks. No API key required." metadata: {"nexscope":{"emoji":"πŸ’°","category":"ecommerce"}}

Profit Margin Calculator β€” Shopify/DTC πŸ’°

Calculate product profitability for Shopify and DTC stores β€” cost breakdowns, profit margins, and CAC/LTV analysis.

Installation

npx skills add nexscope-ai/eCommerce-Skills --skill profit-margin-calculator-shopify -g

Cost Components

| Cost Item | Description | Notes | |-----------|-------------|-------| | Product Cost | FOB purchase price | - | | Inbound Shipping | To 3PL warehouse | - | | 3PL Fulfillment | ShipBob/Deliverr etc. | - | | Payment Processing | 2.9% + $0.30 | Shopify Payments | | Advertising | 20-40% | Main cost ⚠️ | | Return Cost | Return processing | - | | Customer Shipping | If free shipping offered | Optional |

DTC Characteristics

  • No platform commission: Only payment processing fees
  • High ad spend ratio: 20-40%, main cost driver
  • Requires high margins: 60%+ gross margin to support ads
  • Focus on LTV/CAC: Recommended >3
  • Key Metrics

    | Metric | Recommended | |--------|-------------| | Gross Margin | >60% | | Net Margin | >20% | | LTV/CAC | >3 | | Repeat Rate | Higher = better |

    Usage

    python3 scripts/calculator.py

    python3 scripts/calculator.py '{"selling_price": 49.99, "ad_spend_ratio": 0.20, "product_cost": 12}'

    Output Example

    πŸ’° Shopify/DTC Profit Analysis Report

    Selling Price $49.99 100.0% ──────────────────────────────────────── Product Cost -$12.00 24.0% 3PL Fulfillment -$4.50 9.0% Payment Processing -$1.75 3.5% Advertising -$10.00 20.0% ⬅️ Main cost ... ──────────────────────────────────────── Net Profit $18.59 37.2%

    πŸ’‘ Max Affordable CAC: $10.00

    DTC Golden Ratios

    DTC Health Formula:
    β”œβ”€β”€ Gross Margin > 60%
    β”œβ”€β”€ Ad Spend < 30%
    β”œβ”€β”€ Fulfillment < 15%
    β”œβ”€β”€ Net Margin > 15%
    └── LTV/CAC > 3
    

    vs Amazon

    | Item | Amazon | Shopify/DTC | |------|--------|-------------| | Platform fee | 8-15% | 0% | | Payment fee | Included | 2.9% + $0.30 | | Ad spend | 10-20% | 20-40% | | Margin need | 40%+ | 60%+ | | Traffic | Platform | Self-built |


    Part of Nexscope AI β€” AI tools for e-commerce sellers.

    πŸ’‘ Examples

    python3 scripts/calculator.py

    python3 scripts/calculator.py '{"selling_price": 49.99, "ad_spend_ratio": 0.20, "product_cost": 12}'