Use Case

SKU-Level Profitability

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Overview

What this means for operators

Best-selling products are not always the most profitable products. Revenue reports from Shopify show volume, but they do not subtract COGS, shipping, returns, and allocated variable costs at the individual SKU level. The result is catalog and promotion decisions made on incomplete data — scaling products that generate revenue without generating margin.

Your best-selling products may not be your most profitable products. Without subtracting COGS, shipping, and variable costs at the SKU level, you are making catalog and promotion decisions on incomplete data.

The problem

Your best-selling products may not be your most profitable products. Without subtracting COGS, shipping, and variable costs at the SKU level, you are making catalog and promotion decisions on incomplete data.

What operators do today

Common workarounds that fall short

Revenue-by-product reports from Shopify that show volume but not profitability

Manual COGS allocation in spreadsheets updated quarterly — if at all

Gross margin estimates that exclude shipping, returns, and variable costs

Promotion decisions based on revenue rank rather than margin rank

Results you can expect

Measured outcomes from Fairview users

100%

of SKUs ranked by actual margin — not revenue — after connecting cost data

15-20%

of product catalog typically identified as unprofitable after full cost allocation

<1 day

to see SKU-level profitability after connecting Shopify and QuickBooks

Features used

Powered by

SKU Profitability Contribution Margin Tracker Margin Intelligence

What operators say

"Our top-selling product by volume was number 47 by margin. We had been promoting it aggressively for six months. Fairview showed us the real numbers in the first data refresh."

Kelsey Burke

Director of Ecommerce, Fieldstone Home (home goods D2C brand, 300+ SKUs)

Explore more

Related use cases

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Try it yourself

See how Fairview handles sku-level profitability

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FAQ

Frequently asked questions

COGS (from QuickBooks or Xero), shipping estimates (from order data), and allocated variable costs. The result is contribution margin per SKU.
Yes. Fairview provides a profitability-ranked view of your product catalog.
Fairview's setup flow includes chart of accounts mapping. If COGS is tracked at the category level, Fairview allocates it to products within that category.
Yes. Refund data from Shopify is factored into SKU profitability calculations.

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