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Margins and cost basis

Several report columns — Margin %, Markup %, Gross profit / unit, Gross profit (stock), and Stock cost — depend on which cost you’re comparing a variant’s price against. Reports that show them let you choose the cost, and name it right in the column so you always know which number you’re looking at.

  • Choosing the cost basis
  • What each column means
  • A cost of zero
  • Reading the numbers on a grouped row

On reports where it applies (Products, Low stock, ABC analysis, Stock on hand), a Cost basis control sits in the toolbar with two options:

OptionWhat it reads
Shopify costThe cost per item stored on the Shopify variant — the Cost price value.
Supplier costThe primary supplier’s mapped cost for the variant. A variant with no supplier link shows ”—”.

Switching the basis rewrites every margin, markup, gross-profit, and stock-value number on screen. To make that unmissable, the affected column headers name the basis in use — for example Margin % (Supplier cost) — so the header and the numbers underneath it always agree, in the table, in an export, and on a scheduled report’s CSV.

  • Margin %(price − cost) ÷ price × 100
  • Markup %(price − cost) ÷ cost × 100
  • Gross profit / unitprice − cost, per unit
  • Gross profit (stock)available quantity × (price − cost), for everything currently on hand
  • Stock costavailable quantity × cost

Hover any of these cells to see the exact formula and the operands it used, unrounded.

If a variant’s cost reads as zero — commonly because a cost wasn’t imported for it — the margin family treats that as free goods: a 100% margin, with the full retail price counted as profit. That’s mathematically correct given a zero cost, but it’s worth checking whether the zero is real or just a gap in your cost data before trusting the number.

Group a report by a dimension (supplier, vendor, and so on) and the margin-family columns still show, but as a rollup of the rows in that group — an average for Margin %, Markup %, and Gross profit / unit, and a sum for Gross profit (stock) and Stock cost. Hover a grouped cell to see which of the two it is.