eCommerce Profit and Revenue Reporting

Profit Measuring Overview

Second, get familiar with the tool so you can accurately measure the profits for your brand.

You’ll notice the tool is colour coded:

• Green = Update
• Blue = Automatically calculated
• Yellow = Variable expense per order (requires manual calculation)

Green (Update)

Simply update:

• Cost
• Revenue
• ROAS
• Sales

From your marketing channel.

If you’re advertising on Google Ads, you’d take the monthly figures from the platform and insert them into the spreadsheet.

If you’d like to do this for both Meta and Google Ads, you can either…

Duplicate the sheet and rename them:

• January – Google Ads
• January – Meta Ads

Or simply add the totals for both platforms and include them within the same sheet.

Note: If you decide to do combine the totals, keep in mind the ROAS figures (column D) doesn’t impact the calculations, you can simply input a blended ROAS.

The key is to retrospectively update these figures based on actual campaign performance after each month has ended.

Yellow (Requires Manual Calculation)

Now calculating variable expenses per order can be a little tricky.

If you’re selling a $75 item for example, your variable expense could look like this:

• Shipping: $10
• Product COGs: $10
• Payment gateways + fees: $1

Your total variable expense in this example would be $21.

Now if you have varying products with different shipping costs you can take an average shipping cost and use this instead.

The idea is to tweak the variable expense numbers until they match your actual reported profits.

Alternatively, if you’re stuck on this step, simply tweak the variable expense column (F) until the calculated profit (column H) matches with your company’s reported profit for the month (this is profits before fixed expenses have been applied).

Monthly fixed expenses (social creative, agency fees etc.) can be deducted from total monthly profit (cell H14).

Blue (Automatically Calculated)

Once you’ve updated the green and yellow cells, the blue cells:

• Sale expenses
• Profit

Will be automatically calculated.

Now seeing all these figures together is incredibly powerful.

It allows you to calculate the impact on profit depending on what variable you’re adjusting.

For example, in some cases increased spend and revenue doesn’t translate to increased profit.

If you’re noticing this after updating your figures, you’d be better off reducing spend alongside revenue which could lead to higher profits.

Alternatively, if you’re looking to maximise market share and operate at breakeven, knowing your LTV will generate you greater profits, this tool will allow you to identify the exact spend targets you need to be hitting to achieve this.

In summary, with all these key metrics in one view, you’re able to strategically plan and adjust your approach depending on your brand’s goals.

In the world of profits and data:

Increased visibility = Increased ability.

Quarterly Reporting

The 4th tab within the spreadsheet is a quarterly profit overview:

The best part?

This entire tab is updated automatically.

It’s a great place to review what worked, what didn’t, leave notes and plan costs, revenue and profits strategically based on your brand’s goals for future months.

This puts you right in the drivers seat and gives you the control you need to really elevate your brand and take it to the next level!