The Unit Economics Report provides data on the profitability of products across various sales channels. The report allows you to analyze how profitable each sales channel is for a specific product over a certain period. Using the report, you can decide whether to keep selling a product in a particular channel or stop if it is not profitable.
The report is based on the following transactions: Shipment, Sales Return. It includes data from both archived and unarchived transactions.
Operating Costs Accounting
You can generate the report with or without operating costs — salary, marketing, rent. The Unit Economics Report including operating costs lets you see the real profitability of the business.
To include operating costs in the report, turn on the Allocate operating cost toggle.
If operating costs accounting is enabled:
- Operating cost accounting is based on the following transactions: Outgoing Payment, Outgoing Cash Payment, and Write-off.
- If a sales channel is specified in the transaction, expenses are accounted only for that channel. If no channel is specified, expenses are distributed across all products in proportion to the sales amount.
- Transactions with the expense items Expenses for purchases, Transfer, and Expenses for returns are not included. This accounting method is also implemented in the Profit and Loss Report.
- Operating costs include the Taxes item and exclude expense items for which the Include in Profit setting is disabled.
Viewing the Report
To view the report, select Sales → Unit Economics.
You can filter the data in the report by time period. To do this, specify the start and end dates of the period.
The report for each product provides the following indicators:
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Total profit — the profit earned from the sale of a product across all sales channels. If there were no Sales Returns, the profit is calculated as: Sales Revenue − Cost of Sold Products. If there were Sales Returns, the profit is calculated in several steps:
- Sales Revenue − Return Amount = A
- Cost of Sold Products − Cost of Returned Products = B
- Total profit = A − B
- Profit Margin — the profitability of product sales. It is calculated using the following formula: (Sales Revenue − Return Amount) − (Cost of Sold Products + Commission Amount − Cost of Returned Products) / (Cost of Sold Products + Commission Amount − Cost of Returned Products) * 100%.
- Sales channels — for each sales channel and each product, both profit and profit margin are provided.
- Without sales channels — profit and profit margin of products sold without specifying a sales channel.
To upload the report, click Upload to Excel. This is possible if there are any products in the report.