Shopify COGS Inventory Profit Estimator

in Tools, Shopify, Inventory 1 min read

Calculate gross profit tied up in Shopify inventory after landed COGS and expected sell-through.

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Shopify COGS Inventory Profit Estimator

Calculate gross profit tied up in Shopify inventory after landed COGS and expected sell-through.

Enter inventory and unit economics to calculate projected gross profit.

Formula: sellable units times unit gross profit after landed cost and fulfillment.

What this tool does

Inventory can look like an asset while quietly becoming a storage-fee subscription. This calculator estimates gross profit from the units you expect to sell after landed COGS and fulfillment.

How to use it

Use physical units on hand, not ordered units that have not arrived. For sell-through, use the percentage you realistically expect to move before markdowns. Landed COGS should include freight, duties, and prep costs.

How to use the result

Compare projected gross profit to the cash locked in inventory. If the result is thin, slow the reorder, raise price, or bundle the SKU before adding ad spend. Feed the same SKU into your profit calc process before a reorder decision.

Try Profit Calc free on Shopify App Store. Check this SKU here, then use Profit Calc on the Shopify App Store to compare inventory profit against real order data.

Tags: shopify inventory profit calc calculator
Jamie

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About the author

Jamie — Founder, Profit Calc (website)

Jamie helps Shopify merchants build profitable stores through data-driven strategies and proven tools for tracking revenue, costs, and margins.

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