Refunds and returns aren't deducted from margin. See them on Refund Intelligence instead.
Margins don't include fees or your own shipping cost. Payment processing fees, marketplace fees and the shipping you pay carriers aren't included yet.
Bundles use one cost unless your sales channel already splits them into separate items.
Prices that include VAT (for example EU or Australian storefronts) aren't supported yet.
Margin is calculated per SKU, channel or order system, not for combinations of products bought together.
Metric definitions
Every metric in Unit Economics is calculated the same way across all pages.
Metric | How It's Calculated |
Gross Sales | Retail price per unit × units sold, excluding sales tax/VAT and shipping |
Discounts | Retail price per unit × units sold, excluding sales tax/VAT and shipping |
Shipping Fee (Shipping Collected) | What your customer paid for shipping, not your own shipping cost. In SKU Mix, split across the order's items |
Net Revenue | Gross Sales − Discounts + Shipping Fee |
Product Cost | Product cost rate × units sold |
Product Margin | Gross Sales − Product Cost. Your margin before discounts |
Product Margin % | Product Margin ÷ Gross Sales × 100 |
Contribution Margin 1 (CM1) | Net Revenue − Product Cost. Your margin after discounts |
CM1 % | CM1 ÷ Net Revenue × 100 |
Average Product Margin, Average CM1 | Total margin ÷ number of orders |
Average Discount | Total discounts ÷ number of orders |
Refund rate by count | Refunded units ÷ total units ordered × 100 |
Refund rate by amount | Total refund amount ÷ Gross Sales × 100 |
FAQ
Why is a SKU showing a dash instead of a margin?
It doesn't have a product cost yet. Add one on COGS Rates, and it will show after the next data run.
I updated a cost. Why haven't my margins changed?
New and edited costs show as Staged until the next data run, usually within a day. They then change to Applied and your margins update.
Why can't I edit some costs?
Costs synced from NetSuite or QuickBooks can only be changed in your accounting system. Costs you uploaded or entered in Blue Onion can be edited or deleted.
Will changing a cost change my past margins?
Only from the cost's valid from date onward. Items that shipped before that date keep the cost that applied at the time.
What's the difference between Product Margin and CM1?
Product Margin is before discounts. CM1 is after discounts and includes the shipping your customer paid. The gap between them shows what discounts cost you.
Need help?
Reach out to your Customer Success Manager or contact Blue Onion support from the Support menu in the app.