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name: profit-margin-calculator-shopify version: 1.0.0 description: "Shopify/DTC profit margin calculator for sellers. Calculate cost breakdowns including ad spend, CAC, payment processing fees, and 3PL costs. Includes LTV/CAC analysis and DTC-specific benchmarks. No API key required." metadata: {"nexscope":{"emoji":"💰","category":"ecommerce"}}

Profit Margin Calculator — Shopify/DTC 💰

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

Installation

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

Cost Components

Cost Item	Description	Notes
Product Cost	FOB purchase price	-
Inbound Shipping	To 3PL warehouse	-
3PL Fulfillment	ShipBob/Deliverr etc.	-
Payment Processing	2.9% + $0.30	Shopify Payments
Advertising	20-40%	Main cost ⚠️
Return Cost	Return processing	-
Customer Shipping	If free shipping offered	Optional

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

Metric	Recommended
Gross Margin	>60%
Net Margin	>20%
LTV/CAC	>3
Repeat Rate	Higher = better

Usage

python3 scripts/calculator.py

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

Output Example

💰 **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

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

vs Amazon

Item	Amazon	Shopify/DTC
Platform fee	8-15%	0%
Payment fee	Included	2.9% + $0.30
Ad spend	10-20%	20-40%
Margin need	40%+	60%+
Traffic	Platform	Self-built

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