Question 1

What costs should I include in Shopify unit economics?

Accepted Answer

Include COGS (product cost), shipping per unit, payment processing fees (Shopify plan determines the rate), return costs (refunds, restocking), and ad spend per unit. The latter is your total monthly ad spend divided by orders.

Question 2

How do I get ad spend per unit?

Accepted Answer

Divide your total monthly ad spend by your total monthly orders. For example, $3,000 ad spend with 500 orders = $6 ad spend per unit. This gives you a realistic view of customer acquisition cost.

Question 3

What is a good operating margin for Shopify?

Accepted Answer

Operating margin (before ads) of 40%+ is strong. It leaves room for ad spend while staying profitable. Below 25% operating margin often means you need to raise prices or reduce costs before scaling ads.

Question 4

Should I use Basic, Shopify, or Advanced for the calculator?

Accepted Answer

Match your actual plan. Basic charges 2.9% + $0.30, Shopify 2.6% + $0.30, Advanced 2.4% + $0.30. If you use a third-party payment gateway, add 0.5-2% for the extra transaction fee.

Shopify Unit Economics Calculator

Inputs

Understanding Shopify Unit Economics

Frequently Asked Questions

Want help growing your Shopify store profitably?