Profit Margin Calculator — Shopify/DTC 💰#

Calculate product profitability for Shopify and DTC stores — cost breakdowns, profit margins, and CAC/LTV analysis.

Installation#

bash

npx skills add nexscope-ai/eCommerce-Skills --skill profit-margin-calculator-shopify -g

Cost Components#

Cost ItemDescriptionNotesProduct CostFOB purchase price-Inbound ShippingTo 3PL warehouse-3PL FulfillmentShipBob/Deliverr etc.-Payment Processing2.9% + $0.30Shopify PaymentsAdvertising20-40%Main cost ⚠️Return CostReturn processing-Customer ShippingIf free shipping offeredOptional

DTC Characteristics#

• No platform commission: Only payment processing fees
• High ad spend ratio: 20-40%, main cost driver
• Requires high margins: 60%+ gross margin to support ads
• Focus on LTV/CAC: Recommended >3

Key Metrics#

MetricRecommendedGross Margin>60%Net Margin>20%LTV/CAC>3Repeat RateHigher = better

Usage#

bash

python3 scripts/calculator.py

python3 scripts/calculator.py '{"selling_price": 49.99, "ad_spend_ratio": 0.20, "product_cost": 12}'

Output Example#

text

💰 **Shopify/DTC Profit Analysis Report**

Selling Price         $49.99   100.0%
────────────────────────────────────────
Product Cost          -$12.00    24.0%
3PL Fulfillment       -$4.50     9.0%
Payment Processing    -$1.75     3.5%
Advertising           -$10.00    20.0%  ⬅️ Main cost
...
────────────────────────────────────────
Net Profit            $18.59    37.2%

💡 Max Affordable CAC: $10.00

DTC Golden Ratios#

text

DTC Health Formula:
├── Gross Margin > 60%
├── Ad Spend < 30%
├── Fulfillment < 15%
├── Net Margin > 15%
└── LTV/CAC > 3

vs Amazon#

ItemAmazonShopify/DTCPlatform fee8-15%0%Payment feeIncluded2.9% + $0.30Ad spend10-20%20-40%Margin need40%+60%+TrafficPlatformSelf-built

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Part of Nexscope AI — AI tools for e-commerce sellers.