When it comes to tracking your sales and revenue, it's important to understand how different platforms calculate their metrics. In this article, we'll be discussing the differences between BeProfit and Shopify's calculation of 'Gross Sales' and how to make a fair comparison between the two.
In summary, while BeProfit and Shopify may calculate Gross Sales differently
Using the 'total sales' metric is the best way to compare between the two platforms.
It's also important to consider the calculation preferences.
What is Gross Sales?
Gross Sales is a term used to describe the total amount of sales made by a business before any deductions or expenses are taken into account. It is a key metric for businesses to track as it gives an overall picture of their revenue.
BeProfit's Calculation of Gross Sales
In BeProfit, Gross Sales is calculated by adding together the total order revenues and discounts.
To add the Orders Revenues to your dashboard :
Navigate to the dashboard
Scroll to the "Overview" part and click "Customize"
Check the "Orders Revenue" and click save.
Shopify's Calculation of Gross Sales
Shopify calculates Gross Sales by multiplying the product price by the quantity of items sold. This is done before any taxes, shipping, discounts, or returns are taken into account.
One important factor to note is that Shopify includes taxes in their product prices, while BeProfit does not. This makes direct comparisons between the two platforms tricky, as the figures may not match up.
The Key Point for Comparison : Total Sales
While Gross Sales may be the main metric for Shopify, BeProfit's main metric is Order Revenues. This includes the total amount paid by customers, including taxes and shipping, minus any discounts. To make a fair comparison between BeProfit and Shopify, it's best to use the 'total sales' metric, which is consistent across both platforms.
| BeProfit | Shopify |
Gross Sales | Orders Revenues + Discounts | Product price x Quantity (before taxes, shipping, discounts, returns) |
Total Sales | Revenue from sales, taxes and shipping charged, after deducting discounts and refunds | Revenue from sales, taxes and shipping charged, after deducting discounts and refunds |
Refunds and the Impact on Figures
The totals still don't match?
On BeProfit, there is an option to use a preference to "count refunds by order date." This means that refunds will be included in the figures for the date the order was placed, rather than the date the refund was processed.
This can affect the figures when comparing BeProfit and Shopify, disabling this setting should bring the figures much closer.
To change this preference :
Navigate to Settings ➡️ Costs
Click on Calculation preferences and Scroll to "Refund Preferences"
