Most Shopify store owners think they have a 60% margin. After accounting for all real costs, it's often 20-30%.
Hidden Costs That Kill Your Margin
- Shopify subscription (Rs.1,499-20,000/month)
- Payment gateway fees (2-3% per transaction)
- Shipping + packaging
- Ad spend (often 20-40% of revenue)
- Return rate (industry average 15-30%)
- App subscriptions
Real Example: Rs.5L/Month Revenue
| Cost | Amount |
|---|---|
| Product (40%) | Rs.2,00,000 |
| Shopify fees | Rs.20,000 |
| Payment fees | Rs.10,000 |
| Shipping | Rs.30,000 |
| Ads | Rs.75,000 |
| Returns | Rs.20,000 |
| True Profit | Rs.1,45,000 (29%) |
Free Shopify Profit Calculator
Shopify Store Profit Calculator
The most comprehensive free calculator including all hidden costs.
Originally published at GlobalInfoWiki
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