Every metric on your ProfitTree dashboard has a meaningful existence for your business. Fully understand all of our calculations and the value they bring to you. Also understand how they may differ from Etsy's calculations.
Please Note: Metrics displayed are based on the the time period you have selected
Net Sales:
Net Sales on our dashboard is calculated by adding and subtracting the following metrics
Gross Sales:
Is the total sales amount before discounts, shipping collected, refunds, sales tax and gift wrapping
Shipping Collected:
If customer paid for shipping and handling this is total, IF a refund of the shipping collected occurs or a full order cancellation this is reflected under refunds.
Discounts:
The total amount of discounts you gave
Refunds:
The total amount refunded of the sale price recorded on the date of when the sale happened, this also includes credits from refunds with sales tax or VAT
EXAMPLE: You issued a refund today but the order occurred 3 week ago, the refund will be reflected on the dashboard on same day of the order
PLEASE NOTE:
Refunds on Shipping Collected or gift wrapping are reflected inside here in refunds
When you issue a refund, IF Etsy collected sales tax or VAT on the sale, the initial refund to your customer will include this extra money BUT Etsy will then credit your account back the sales tax or VAT, this credit will be recorded in this refunds bucket.
Cost of Goods Sold (COGS):
This amount comes directly from the product costs you input in the Product Cost tab or directly from your POD integration. If your COGS are updated or changed those changes are also reflected here.
Do not understand what COGS are for your Etsy business? Click Here To Learn everything you need to know!
Have not uploaded your COGS yet in ProfitTree? Click Here to learn how!
Operating Expenses:
Operating expenses is the sum of all your transaction fees, processing fees, listing fees, shipping labels paid by you, and Etsy advertising fees.
Transaction Fees:
Transaction fees are the fees Etsy charges you to sell on the platform, this is a standard 6.5% that applies to the total sale amount after discounts, along with shipping and gift wrapping (if you charge your customers for those). This fee is reflected in your designated listing currency.
In the case of a cancellation or partial refund a transaction fee credit is adjusted in this transaction fee bucket
Processing Fees:
These are the standard fees you will be charged for processing credit / debit card transactions. Etsy's standard payment processing fees in the U.S. are 3% + $0.25 per transaction. Different countries have different fees and are subject to change. Please find your country's fees in this article. This fee is charged on the total money collected from a sale including...
Total sale amount of the item (after discounts)
Shipping paid by customer
Any additional gift-wrapping paid by customer
Any applicable sales tax or VAT paid by customer
On an order receipt it would be charged on the following line item amount.
In the case of a cancellation or partial refund a processing fee credit is adjusted in this processing fee bucket
Listing Fees:
Listing fees are a flat rate charge of $0.20 USD per listing posted or sold once either renewed or auto-renewed
In the case of a full cancellation or full refund this fee is credited back to your account and is reflected here under your listing fee bucket. Listing fee credits are not issued for partial refunds
Listing credits from Etsy Plus subscriptions are also reflected in this bucket
Auto-renew sold fees
Auto-renewed listings automatically repost a listing if it’s purchased from your shop, saving you the time of manually reposting products. If you setup a listing to auto-renew and it’s purchased, you’ll be charged the standard $0.20 USD listing fee.
Multi-quantity listing fees
If you have variations of an item for sale in a single listing and a customer purchases more than one variation, you’ll also be charged the standard $0.20 USD listing fee for each additional item purchased from the listing. The additional charges won’t post until a multi-quantity purchase has been made.
For example: if you had more than one item in stock for a particular listing, and a customer purchases two different variations of that item, your payment account would reflect the original $0.20 USD listing fee plus an additional $0.20 USD for the additional item purchased.
Shipping Cost (Shipping Paid By You):
This is the total amount you paid to purchase shipping labels to ship your items to your customers. In this bucket we are also accounting for the following…
Credits from overpaying for a shipping label
Adjustments from underpaying for a shipping label
Refunds of shipping labels that could be caused by…
Unused label refund approved request
Cancellation of an order with a purchased unused label
Ad Cost:
This is the amount of money you have spent on either running Etsy onsite or offsite ads. In this bucket we are also accounting for the following…
Offsite ad credits from refunds
If you have issued a full or partial refund for a sale that was made through an Off-Site Ad, you will be credited with either the full amount or a pro-rata amount of the 12% or 15% fee that was originally charged to you at the time of the sale.
Ad credits from Etsy Plus subscription
If you have Etsy Plus you receive a $5 ads credit back each month and that credit is reflected in this bucket
Understand How Etsy Ads Are Billed
Onsite Etsy ad fees:
Etsy Ads fees are charged on a cost-per-click (or "CPC") basis via a bidding system, and you are responsible for paying for any clicks your ad receives. This means that you will be charged only when your ad is clicked, not simply when it is displayed.
Offsite Etsy ad fee:
With offsite ads, Etsy promotes your products on external platforms like Google, Facebook, Instagram, and more. When someone clicks on your ad and makes a purchase within 30 days, Etsy charges you a fee based on the sale.
If your Etsy shop made less than $10,000 USD, you’ll be charged a 15% fee for an order attributed to an Offsite Ad on the amount you made from your sale before the advertising fee was applied. If your Etsy shop has made less than $10,000 USD on Etsy in the past 365 days, offsite Ads are optional.
If your Etsy shop made at least $10,000 USD in the past 365 day period, you’ll get a discounted fee of 12% and offsite ads are no longer optional.
Operating Profit:
Operating Profit on your ProfitTree dashboard is your Net Sales minus your Cost of Goods Sold minus your Operating Expenses
Operating Profit over time gives you true performance indicators on how your Etsy shop is doing!
Compare Periods Graph
This graph allows you to see your upward or downwards trends of all your different shop metrics over time. Just click on the metric you want to analyze and it will be displayed on your compare time period graph.
If you would like to see your metrics compared to the previous time period toggle the Compare Periods ON
Performance:
The performance box is sharing 3 important metrics with you including:
% Profit: This is the percentage of profit your store had for the time period you selected, after all operating expenses and cost of goods sold. You can also see the upward or downward trend compared to the previous time period you selected.
% Profit = Operating Profit / Net Sales X 100
ROI: The return on investment is the % amount of return you received on what you spent to sell your products. You can also see the upward or downward trend compared to the previous time period you selected.
ROI = Operating Profit / (COGS + Operating Expenses) X 100
Units Sold: This is the total number of units sold for the selected time period. This is different from the total orders. You can also see the upward or downward trend compared to the previous time period you selected.
Orders:
The Orders box is sharing important metrics including:
Orders: This is the total number of orders you received for your given time period
Avg. Order Value: This is your average order value. This is the average value of each order you receive in your store. It is important to always strive to increase your average order value over time.
Avg Shipping Cost: This is the average cost of shipping each of your orders to your customers
Shipping:
The Shipping box is sharing important metrics including:
Shipping Collected: This is the amount of money you have collected from your customers for shipping. Refunds for shipping collected are being reflected under refunds. Credits from refunds of shipping collected are also being reflected under refunds.
Shipping Cost: This is the amount of money you have spent to purchase shipping labels on behalf of your orders. This includes…
Credits from overpaying for a shipping label
Adjustments from underpaying for a shipping label
Refunds of shipping labels that could be caused by…
Unused label refund approved request
Cancellation of an order with a purchased unused label
Balance: This is the difference between Shipping Collected and Shipping Cost. Here you can see if you broke even, made money or lost money on your shipping.
Advertisement:
The Advertisement box is sharing important metrics including:
Etsy Ad Spend: The total amount of money you spent on Etsy Onsite or Offsite ads
ROAS: stands for "Return on Advertising Spend." It's a metric used in Etsy online advertising to measure the effectiveness of a marketing campaign on a listing in relation to the amount spent on advertising.
To calculate ROAS, you would typically divide the revenue generated from the advertising campaign by the cost of the advertising campaign.
For example: if a seller spent $100 on advertising and generated $500 in revenue from that advertising, the ROAS would be 5 ($500 revenue / $100 ad spend).
In the ProfitTree dashboard we are showcasing what your historical Average ROAS were for the time period selected for your entire shop. We are dividing:
Net Sales / Total advertising spend on all listings = Overall Shop ROAS
This way you can get a holistic view of how your marketing efforts are performing!
What if my Etsy ROAS are decreasing over time?
If you see that your Etsy ROAS is decreasing over time, this could indicate that your marketing costs are becoming more expensive and your cost of acquiring customers through Etsy ads is increasing. You will want to strive to increase your ROAS by having competitive products, prices, images, value propositions, etc.
What if my Etsy ROAS are Increasing over time?
If you see that your Etsy ROAS is increasing over time, this could indicate that you are converting more of your sales traffic from your Etsy ads into paying customers. This is a good sign that the improvements you are making to your product listings are working.
Breakeven ROAS: Breakeven ROAS (Return on Advertising Spend) is a metric that shows you how much revenue you need to make from your Etsy ads to just cover the cost of those ads. In other words, it tells you the minimum level of return you need to break even.
For example: if your breakeven ROAS is 2, it means for every dollar you spend on advertising, you need to make $2 in revenue just to cover the cost of the ads.
The ProfitTree dashboard Breakeven ROAS tells you the average return you've historically needed from those ads to ensure you're not losing money based on all your products and their costs.
IMPORTANT NOTE: It is important that you have uploaded your cost of goods sold for your sold products in order for this to be calculated correctly. If you have not added your COGS to your ProfitTree account Click Here to learn how.
IF the Breakeven ROAS on your ProfitTree dashboard is higher than your ROAS, it indicates significant problems with your marketing cost %. This suggests that further optimization is needed with your Etsy ads or listings to improve their effectiveness.