3 min read

Profit

Sales tell you what came in. Profit tells you what you kept. Koomerce works it out for every order, using what the goods actually cost you (your landed cost from purchase orders: price, freight, customs and the rest).

What this is for

• Seeing if an order made money, on the order page.
• Finding which products earn the most, and which barely pay for themselves.
• Watching profit month by month.

How it is worked out

For each order:

1. Net sales (without GST): what the customer paid, less refunds, without the GST inside it. If the order was cancelled or came back undelivered (RTO), only the money you actually collected counts.
2. Less the cost of goods: what each item cost you when it sold. This is saved on the order when it is placed, so later cost changes do not change old orders. Items returned to stock do not count.
3. Less courier charges: what the courier charged for the parcel. When you book through a connected courier that tells us its charge, it is filled in for you. Otherwise type it on the order page.
4. Less payment fees: what the payment gateway kept. Razorpay and Cashfree report the actual fee for each payment, and that is used. Until it arrives, your rate from Settings → Costs for profit for how the customer paid (UPI, credit card, net banking…) is used, then your rate for that gateway. For cash on delivery, the courier’s COD fee from the same page is used. GST on fees is left out if you have a GST registration (you claim it back), and counted if you do not.
5. Less RTO costs: what the courier charged to bring an undelivered parcel back.

What is left is the profit, and the margin is profit as a share of net sales.

When something is not known (an item without a cost, a parcel without a courier charge, a payment method without a fee rate), it counts as zero and the order page says so. Nothing is guessed.

Where to see it

• Order page → Profit: the lines above for that order, with a note when something is missing. Payment fees says Actual when the gateway reported the fee, Estimated while your rates are used, or Partly estimated when an order has both. If the order has a parcel, you can type its courier charge here.
• Analytics → Reports → Profit by month and Profit by product. By product, each order’s courier charge, fees and RTO are shared across its items by their value.
• Settings → Costs for profit: the rates used until the actual fee arrives, by how the customer paid and by gateway (a percent, plus a fixed amount if your gateway charges one), and your courier’s cash on delivery fee.

Orders placed before profit tracking began use each item’s cost from that day, marked as estimated.

Try it

1. Open Settings → Costs for profit and check the rates against your Razorpay plan.
2. Open a recent order. The Profit card shows net sales, cost of goods, courier charges, fees and the profit.
3. If it says the courier charge is not known, type it under the card and select Save.
4. Open Analytics → Reports → Profit by product to see your best earners.