Understanding Shopify's Net Sales Calculation
In Shopify, Net Sales is calculated as:
Net Sales = Gross Sales – Discounts – Returns
Gross Sales: Total sales before any deductions.
Discounts: Reductions applied to orders (e.g., promo codes).
Returns: Value of refunded or returned products.
This calculation provides a simplified view of revenue after accounting for promotional discounts and returns. You can access this breakdown within your Finance reports in the Shopify admin dashboard.
Understanding Lebesgue's Net Revenue Calculation
In Lebesgue, Net Revenue includes:
All line item prices
Discounts
Shipping costs, taxes, and tips
Adjustments due to order edits, refunds, and returns
In short, Net Revenue in Lebesgue represents the actual revenue generated by your store, reflecting all transactional adjustments—providing you with a comprehensive and operationally-focused view of your business income.
Main Differences in Returns Reporting
The main difference between Lebesgue and Shopify net revenue reporting is that returns in the Lebesgue dashboard are calculated based on the order date, while in Shopify analytics, returns are based on the return date.
For example, if an order was processed on March 3rd but returned on April 3rd:
Lebesgue will report the returned revenue for March (the original order date).
Shopify will report the returned revenue for April (the actual return date).
When it comes to analyzing your advertising performance, the Lebesgue approach provides a clearer connection between orders, returns, and your ad spend, making it easier to assess marketing effectiveness. Shopify’s approach, on the other hand, aligns more closely with financial reporting and cash flow analysis.
Why the Difference Matters
Shopify’s Net Sales: Primarily for accounting simplicity and cash flow tracking.
Lebesgue’s Net Revenue: Provides greater operational clarity and is ideal for analyzing performance, marketing ROI, and customer lifetime value.
Need Help?
If you’re unsure which metric to track or how to reconcile your data, feel free to reach out:
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Paula, Customer Success & Support Manager – Book a Call
We’re here to ensure you get the most out of your data!