Once you've configured your data sources, you can leverage Polar's ready-to-use metrics for both Gross Profit and Gross Margin to gain quick insights into your profitability. Gross Profit is calculated as Net Sales - Cost of Products, and Gross Margin is calculated as Gross Profit ÷ Net Sales (you can also adjust how you'd like to calculate cancelled and $0.00 orders within your Data Settings). Keep in mind that by default, these metrics do not include expenses or marketing costs.
If your costs are currently going through Shopify, they're also already in Polar (and there's no need to re-import them). If your Cost of Goods Sold (COGs) are not currently in Shopify, we recommend adding them to Shopify so that so that they can pull automatically to Polar. This article from Shopify's Help Center details how you can do that.
If you have costs that are not going through Shopify, such as logistics expenses or marketing spend, you have the option to import these additional costs into Polar in order to gain further insight into your true profitability.
There are two methods to importing your expenses into Polar:
If you would like to add any expenses, such as logistics expenses, you can utilize our Expense Google Sheet template to input your costs into a spreadsheet and import them to Polar. You can also choose to have these expenses included in your Gross Profit / Gross Margin or not through your Data Settings.
If you would like to add any other costs, such as marketing spend, you can utilize our Spend Google Sheet template. If you'd like to include these costs into your Gross Profit or Gross Margin, you'll need to create a Custom Metric to re-create the formulas and add in the marketing spend.
Once you've imported your costs, you can view profitability metrics within both the Products tab and Custom Reports. You can also create a Custom Metric if you'd like to define your own formula for profitability.
The Product Sales table will give you a quick look into your Net Profit.
A Custom Report can give you insight into overall Cost of Products.