This page relates to order costs for general orders. Order costs for drop-shipped orders can be pulled from the related PO. Read more here
All costs and revenues are calculated to determine the Gross Profit ($) and the Profit Margin (%)
Profit Margin is calculated as the "Gross Profit Margin" - ((revenue - costs) / revenue) * 100.
SellerCloud uses this calculation, as opposed to using the "Mark Up" - ((revenue - costs) / costs) * 100.
This example demonstrates the difference:
- Cost = 100, and Revenue = 150. Gross Profit = $50.00
- Gross Margin: 33.33%
- Mark Up: 50.00%
This list below explains the various costs and revenues displayed on the order details P&L tab that are used to calculate P&L.
- Item cost can be calculated as a fixed cost - Site Cost or PO Last Cost, or with average - Simple or Weighted. The item cost equals the cost of purchasing
the item from the vendor, and can be configured to include shipping or third party costs incurred
to get the item to you. Vendor discounts are factored into the cost of the
item. Read more about calculating the item cost and including shipping costs here.
- Please note: If client setting is set to use Average Cost and Average Cost is zero, the Site Cost will be used instead in the profit and loss tab on the order. However, the P&L Reports will only look at what has been set in the client settings.
saves the item cost with the order details so it will show the cost of the item
as it was at the time of the order. Clicking on the
item cost will open an editing window where you can adjust the cost of the item
by editing the cost.
- Posting fee is the amount a channel charges for listing the item. The fee is applied to the first order for the item in SellerCloud.
- Commission line displays the dollar amount the
channel took from the proceeds of the sale. This can also be referred to as the
Final Value Fee.
- Transaction fees are the costs associated with
processing payment, like a PayPal fee. Client setting Credit Card Transaction Fee enables to set a percentage that will be calculated from the sales and included in the transaction costs.
- Shipping Costs refer to the amount you paid to
ship the item to the customer, regardless of whether the customer paid for
If you did not calculate
the exact shipping cost at the time of order creation, or if you are not sure that
the shipping weight and dimensions were entered correctly, you can import the
exact shipping amounts based on the shipping invoice sent to you by the
shipping carrier. In the Orders menu, select Import Shipping Costs. Download the template and populate the columns with either the order ID or the tracking number, and enter the shipping cost.
Save the file. Now, click the import link for the carrier you are reconciling. Select
the file and click Import Shipping Cost. Currently, SellerCloud
handles formats for UPS, UPS Mail Innovations, and DHL Global.
- Sales tax.
- Rebates refer to vendor rebates that are
credited to the seller when the item is sold. This value reduces the cost of
the order. Rebates can be configured on
the product level by clicking on Rebates on a product detail page.
- Order Cost is the sum total of all costs
associated with the order.
- Payment line shows the total amount the
customer paid, including shipping.
- The bottom line displays the order's profit totaled as a dollar
Profit and Loss in Detail
Clicking on the green icon at the top right of the P&L tab will open a
window that shows the profit and loss in greater detail.
- The first six columns are 3 pairs
of two columns, with 2 columns relating to an item property. Columns that
reference a "Unit" refer to a value of one unit of the sku. Columns
referencing a "Site" refer to the value of all units of that SKU in
- Unit Cost / Site Cost - These two columns refer to the
cost of the item in the order. These values are the cost of the item at the
time of purchase.
- Product Unit Cost / Product Site Cost - These columns refer to the current cost of the item.
- Selling Unit Price / Selling Site Price - These two columns refer to the selling price of the item.
- At the very end of the grid is the profit
of the order both in dollar and percentage formats.
- When an item is sold in an international marketplace, the Profit and Loss will display all costs and payments in the currency that was used for the purchase and in the currency configured in the default company, which in this case is US dollars. SellerCloud checks the currency conversion rate once a day and saves the rate at the time of the order with the order details page.
- When an order has been refunded an additional column will appear showing the refunded amount.
- When an item is returned through an RMA the item
cost will be removed from the profit and loss tab. Likewise, when an FBA order is returned to FBA, the item cost is removed from the order.
- Because a replacement order sends a
new item to the customer, SellerCloud will calculate its profit and loss separately from the original order.
If no payment is made on the replacement order, the profit and loss tab will
only show the order costs.
- Under the Reports tab, you can find many other
reports relating to profit and loss, including the Product Profit report where you
can see the profits, for every order, generated by sales of this product.