Reading your P&L Answer 31 of 36 Updated

How does the product profitability view work?

It shows your P&L for each product, so you can rank products by what they keep, not by what they sell. Open Insights, then the Products tab. The switch on the left moves every card and the table between CM1, CM2, CM3 and EBITDA. Those are the same margins as on your P&L.

CM1 per product is exact, because each sale uses that product's own unit cost. Below CM1, each cost is split by what causes it. Shipping labels go by weight, or by packaging size on a rate card priced by size. Pick and pack goes by units. Packaging and packaging EPR go by packaging size. Return handling goes by the units that came back. Payment fees go by each product's share of the money charged.

Marketing and overhead have no single product that causes them. So they are shared out by net revenue: a blended view, not ad tracking. A product's net revenue includes its share of the shipping customers paid, just like on the P&L. All products together, plus what no product can carry, add up to your P&L lines to the cent.

Use the Columns button to add the figures you need. You can add orders, average price, refunds, each cost, stock and days of stock. Your choice is remembered in this browser. Click a column header to sort by it, and drag the table sideways to see more.

Three columns help with ads. CAC means what it costs to win a customer, and ROAS means the sales an ad platform reports per euro of ads. Breakeven CAC is the most one order of the product can cost in ads before it loses money: its CM2 per order. Breakeven ROAS is the lowest return an ad platform can report before the product's ads lose money. It is the purchase value with VAT and shipping, divided by CM2. Breakeven ROAS excl. VAT is the same without VAT, for ad accounts that report values without it. A product with no unit cost shows a warning sign and is not counted as a loss-maker.

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More in Reading your P&L

All 36 questions
  1. 29 Why do numbers look like 1.234,56?
  2. 30 What is on each Insights tab?
  3. 31 How does the product profitability view work? You are reading this
  4. 32 How do I know whether my ads pay?
  5. 33 What do repeat purchase, order cadence and purchase journeys show?

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