# Product Profitability Analysis for Ecommerce: Rank Products by Profit After Fees

Product profitability analysis for Shopify and Amazon brands: rank products and SKUs by profit after refunds, discounts and fees in Luca AI, then decide what to push, reprice or drop.

- Applies to: Founders and finance leads at Shopify and Amazon brands; profit by product and SKU is switched on for each brand by the Luca team
- Status: Live
- Verified: 2026-11-07
- Canonical page: https://ask-luca.com/product-docs/use-cases/product-profitability-analysis

Product profitability analysis ranks your products by what each one keeps after refunds, discount codes, fees and shipping, not by what it sells. The product at the top of your sales report can sit near the bottom of that list. Luca AI, an e-commerce analytics platform with AI agents for Shopify and Amazon brands, ranks your products and SKUs by gross profit and contribution after those costs. You then decide which to push, reprice or drop.

## At a glance {#at-a-glance}

| | |
|---|---|
| **The job** | Rank every product and SKU by what it keeps, then decide what to push, fix or drop |
| **What Luca calculates** | Gross profit and gross margin by product, variant and SKU, plus refund rate, discount rate and payment fee rate |
| **Cost layers** | CM1 after product costs, CM2 after fulfilment and fees, CM3 after ad spend |
| **Shopify and Amazon** | Each product's Shopify and Amazon contribution side by side, plus Amazon net proceeds per unit after fees |
| **Your costs** | Product, shipping, fee and overhead costs applied through your own cost rules, with the COGS method stated |
| **How you ask** | On the **Profit** tab, or in plain English in chat |
| **Switching it on** | The Luca team switches on profit by product and SKU for your brand |
| **Freshness** | Every source refreshes overnight |
| **What it changes** | Nothing. Luca never changes a price, a product or a listing; you decide |

## Where it fits {#where-it-fits}

### What it's for {#what-its-for}

Product profitability analysis tells you which products pay for the business and which ones quietly cost you money. It answers the question a sales ranking can't: after refunds, discounts, fees and shipping, what did this product actually leave behind?

### How it helps {#how-it-helps}

- **Ranks by profit, not revenue.** You see each product's contribution in pounds and as a margin, so a busy product with thin margins stands out.
- **Shows where the money leaks.** Refunds, discount codes and fees come off product by product, so you can see which one does the damage.
- **Splits Shopify from Amazon.** The same product can earn well on your store and badly on Amazon, or the other way round.
- **Gives you a decision, not a report.** Push, reprice, fix or drop, with the numbers behind each choice.

### What happens without it {#without-it}

You keep feeding ad budget, stock and discount codes to whatever sells most. A product that loses a little on every order can grow until it drags down the month. You find out at year end, when the accounts show a margin no single product explains.

### Why buyers care {#why-buyers-care}

Founders care when they plan the next range, a sale or a price rise, because a top seller is the riskiest product to get wrong. Finance leads care at month end, when they have to explain why revenue grew and profit didn't.

## The Luca AI approach to product profitability analysis {#approach}

{/* 5P */}

Take the founder of a Shopify ceramics and homeware brand. Her four-mug set outsells everything else in the range. But the parcels are heavy, a share of sets arrive with a broken mug, and the set appears in almost every discount code she runs. She suspects it earns very little, and she has to decide whether to push it, reprice it or drop it.

The usual route is a spreadsheet. She might export orders and refunds from Shopify and pull the courier invoices and payment fees. Then she tries to share them out across products by hand. That can take a weekend, and the split is often a guess. By the time it's done, the next sale has already gone out.

What has changed is the weight of the costs that sit after the sale. Discount codes, breakage refunds and shipping are now large enough to turn a healthy-looking product into a loss. A ranking by revenue can't show that, because none of those costs appear in it.

Luca AI reads Shopify, Amazon, your payment provider and your books, and ranks every product by what it keeps. It takes returns and refunds out of revenue and margin, down to product level. It shows the profit impact of each discount code, and it applies your own cost rules for product cost and shipping. The founder sees the mug set's real margin beside the rest of her range.

The **Profit by product** card shown below lists units, net revenue, Shopify and Amazon contribution, return rate and margin for every product. How that compares with other tools is covered in How Luca AI compares for product profitability analysis, below.

## What a product profitability analysis in Luca shows you {#what-it-is}

Luca puts product profit on the **Profit** tab, headed **What each product, channel and month actually made**. The tab sits in a dashboard the Luca team builds for your brand, and it refreshes overnight. The same figures are there when you ask in chat.

### What you see on the Profit tab {#profit-tab}

The **Profit by product** card lists every product after product costs, fees, ads and returns, split by where it sold, and sorted by contribution. Each row shows units, net revenue, contribution on Shopify, contribution on Amazon, return rate, contribution across all channels and margin. Products that lose money show negative figures at the bottom of the list.

![The Profit by product card, listing nine products with units, net revenue, Shopify CM3, Amazon CM3, return rate, CM3 across all channels and margin, ending with four loss-making lines.](https://ask-luca.com/product-docs/images/use-cases/profitability-by-product.webp)

*The Profit by product card is where a product profitability analysis starts: the top sellers by revenue are not always the top earners. The figures are sample data for a demo brand.*

Above it, a monthly profit and loss table runs from net revenue to operating profit. Hover over a metric name to see how it is calculated. If you want to see one product on its own, the **Product** filter narrows the tab to it.

### What it is not {#what-it-is-not}

It is not a pricing tool. Luca reads your data and never changes a price, a discount or a listing. It also doesn't tell you which ad or campaign sold a product; the [ROAS analysis guide](https://ask-luca.com/product-docs/use-cases/roas-analysis) covers how spend compares with store revenue.

## How product profitability gets measured {#how-product-profit-is-measured}

There are several ways to rank products by profit. Each one catches some costs and misses others, which is why the same product can look healthy in one report and loss-making in another.

### Revenue rank {#revenue-rank}

The simplest ranking sorts products by sales. It tells you what customers buy, and Shopify notes that [the top-line sales figure hides how revenue splits across products](https://www.shopify.com/blog/sales-analytics). It misses every cost, so a product with high returns, deep discounts and heavy shipping can still top the list.

### Gross profit per product {#gross-profit}

Gross profit takes cost of goods away from net sales. Net sales are [gross revenue minus returns and discounts](https://www.shopify.com/blog/contribution-margin-vs-gross-margin), so this view catches refunds and discount codes. It misses shipping, payment fees and marketplace fees, which can be large on a heavy or low-priced product.

### Contribution margin per product {#contribution-margin}

Contribution margin takes the variable costs of selling a product away from its net sales, then divides by net sales. Shopify gives the [contribution margin formula](https://www.shopify.com/blog/contribution-margin-vs-gross-margin) with a worked figure. This view catches shipping, packaging and fees. It is also the measure that helps you decide which product lines to invest in and which to cut. Its weak spot is shared costs: how you split one parcel across three products changes the answer.

### Contribution after ad spend {#after-ads}

Some brands take ad spend off as a third layer. This catches products that only sell when you pay to promote them. It is an allocation, though, not proof of which ad sold which order, so treat it as a guide rather than a verdict.

### Net proceeds per unit on Amazon {#amazon-net-proceeds}

On Amazon, referral and fulfilment fees come off every unit before the payout. Net proceeds per unit shows what you keep from each sale. It catches products whose fees swallow most of the price. It misses your own costs after the payout.

### What Luca is confirmed to do {#what-luca-does}

Luca calculates gross profit and gross margin by product, variant and SKU, Amazon net proceeds per unit after fees, refund rate, discount rate and payment fee rate. It also shows contribution in three layers: CM1 after product costs, CM2 after fulfilment and fees, and CM3 after ad spend. Your cost rules set the product, shipping and fee costs, and the COGS method is stated as average, FIFO or landed cost.

## Run a product profitability analysis {#run-the-analysis}

Work through your range in this order. Each step narrows the list until you have a short set of products that need a decision.

### Rank by contribution, not revenue {#rank-by-contribution}

Open the **Profit** tab and read the **Profit by product** card from the bottom up. The products with negative contribution are your first list. Then look for products high on units but low on margin: they are the ones a revenue report flatters.

For the ceramics founder, the four-mug set might sit in the top three by net revenue and well down the list by margin. That gap is the question to answer.

### Find the leaks: refunds and discount codes {#refunds-and-discounts}

Check the return rate on each product row. A fragile product with a high return rate is usually a packaging or courier problem before it is a pricing problem. Luca also lines up review sentiment against returns and sales by product, which helps spot breakage complaints.

Then look at discounts. Luca shows discount depth, discount-code usage and the profit impact of each promotion. A product that appears in every code may be selling only because it is cheap that week.

![The Net revenue card walking from gross sales through discounts and returns and refunds to net revenue, with shipping charged and VAT kept separate, above a Profit by channel table.](https://ask-luca.com/product-docs/images/use-cases/profitability-net-revenue-walk.webp)

*This walk from gross sales to net revenue shows how much discounts and refunds take before any cost is counted. The figures are sample data for a demo brand.*

### Weigh shipping and fees {#shipping-and-fees}

Heavy and fragile products carry more shipping and packaging cost per order. Luca applies shipping through your cost rules, so the cost lands in the fulfilment layer of your profit and loss. Payment and marketplace fees come off next, reconciled to payouts.

![The Profit tab with filters for date range, channel, product and cost method, contribution per order cards for CM1, CM2 and CM3, and a profit and loss table with fulfilment and shipping.](https://ask-luca.com/product-docs/images/use-cases/profitability-cost-layers.webp)

*The profit and loss table shows each cost layer in turn, so you can see how much fulfilment and fees take from product margin. The figures are sample data for a demo brand.*

### Split Shopify from Amazon {#shopify-and-amazon}

The product card shows Shopify and Amazon contribution in separate columns. A set that earns on your own store can lose money on Amazon once fees come off, or the other way round. Read the Amazon column with net proceeds per unit beside it, and you know whether the channel or the product is the problem.

### Decide: push, reprice, fix or drop {#push-reprice-or-drop}

Luca gives you the numbers; the decision stays with you. A rough guide:

- **Push** products with strong margin and room to grow. They earn more from every extra order.
- **Reprice** products where discounts or fees take most of the margin, and the demand looks firm.
- **Fix** products where refunds or shipping do the damage. Better packaging can be cheaper than a price rise.
- **Drop** products that lose money on every channel after the fixes you can make. Check first what they bring in with them.

Before you drop a product, check whether it brings customers back. The [customer retention analysis](https://ask-luca.com/product-docs/use-cases/customer-retention-analysis) shows which products don't drive repeat purchases.

## How to measure whether a product earns its place {#measure-product-profit}

Two measures matter most for this job. Each has a weak spot you should know before you act on it.

### Contribution margin and contribution in pounds {#margin-and-pounds}

Margin tells you how much of each pound of sales a product keeps. Contribution in pounds tells you how much it adds to the month. Read them together. A product with a thin margin and big volume can still add more pounds than a high-margin product nobody buys, so dropping it can leave a hole.

The weak spot is shared costs. If a parcel holds a mug set and a bowl, how you split the shipping changes both margins. Agree the rule once and keep it, so this month compares with last month.

### Refund rate and discount rate {#refund-and-discount-rate}

Refund rate and discount rate show where a product's revenue goes before costs start. They are the quickest way to tell a pricing problem from a quality or packaging problem.

The weak spot is timing. A refund can arrive weeks after the sale, so a recent month may look better than it will end up. Compare products over a longer period before you act.

### Where Luca shows them {#where-luca-shows-them}

Margin and return rate sit on every row of the **Profit by product** card. Refund rate, discount rate and payment fee rate are among Luca's standard profitability measures. Contribution per order sits in the cards at the top of the **Profit** tab.

## How to calculate profit per product {#how-to-calculate}

You can work this out by hand for a few products. It shows you what Luca is doing for the whole range.

### The manual method {#manual-method}

1. **Export a month of orders** from Shopify, with line items, discounts and refunds.
2. **Work out net revenue per product**: gross sales minus discounts minus refunds.
3. **Add the cost of goods** per unit, using one method (average, FIFO or landed cost) for every product.
4. **Add shipping and packaging.** Take courier invoices and split each parcel's cost across the products in it.
5. **Add payment and marketplace fees** from your payout reports.
6. **Subtract costs from net revenue** to get contribution per product, then divide by net revenue for the margin.
7. **Sort by contribution in pounds and by margin**, and mark the products that rank very differently on each.
8. **Repeat for Amazon**, using the fees from your settlement reports.

### The same job in Luca {#same-job-in-luca}

Luca works through the same steps each night from your connected sources, using the cost rules agreed with your brand. Open the **Profit** tab and read the **Profit by product** card, or ask in chat, for example "which products lost money after ads and returns last month?" The [guide to e-commerce unit economics](https://ask-luca.com/blogs/best-way-to-track-e-commerce-unit-economics) goes further into cost per order.

### A worked example: is the mug set worth keeping? {#worked-example}

This is an illustrative calculation with sample figures, not a Luca output. It compares the ceramics brand's four-mug set with a serving bowl, per unit and over a month. Ad spend is left out to keep it simple.

| Line | Four-mug set | Serving bowl | How it's worked out |
|---|---|---|---|
| List price | £48 | £32 | Price on the store |
| Discount codes, per unit sold | −£6 | −£2 | Average across all orders |
| Breakage refunds, per unit sold | −£4 | −£1 | Refunds spread across all units |
| **Net revenue per unit** | **£38** | **£29** | 48 − 6 − 4 and 32 − 2 − 1 |
| Product cost (landed) | −£15 | −£9 | Cost of goods per unit |
| Shipping and packaging | −£12 | −£6 | Heavier, double-boxed parcel for the set |
| Payment fees | −£1 | −£1 | From payout reports |
| **Contribution per unit** | **£10** | **£13** | 38 − 15 − 12 − 1 and 29 − 9 − 6 − 1 |
| **Margin** | **26%** | **45%** | 10 ÷ 38 and 13 ÷ 29 |
| Units a month | 600 | 200 | From the order export |
| **Contribution a month** | **£6,000** | **£2,600** | 600 × 10 and 200 × 13 |

The mug set has the weaker margin, but it still adds the most pounds. Dropping it would lose 6,000 pounds of contribution a month. The better move is to fix the leaks. If discounts fell to 3 pounds and breakage refunds to 2 pounds per unit, contribution would rise to 15 pounds a unit. At the same 600 units, that is 9,000 pounds a month, or 3,000 more.

## Set up product profitability analysis in Luca {#set-up}

You can [set up Luca without a developer](https://ask-luca.com/product-docs/getting-started/set-up-luca), and every connection is [read-only by design](https://ask-luca.com/product-docs/platform/read-only-access).

1. **Connect Shopify.** Open **Sources** and click **Connect** on the Shopify card. Luca reads your full order history, including refunds and discount codes.
2. **Connect Amazon Seller Central.** It connects self-serve, one region at a time, and brings in fees and settlements.
3. **Connect Stripe** if you take payments through it, so processing fees and refunds come in too.
4. **Connect Xero or QuickBooks.** Your accounting profit and loss sits beside product profit.
5. **Agree your cost rules.** During onboarding the Luca team maps your data and sets your product costs, shipping, fees and overheads, with the COGS method stated.
6. **Let the Luca team switch it on.** Profit by product and SKU is set up for each brand, and the team switches it on for yours.
7. **Open the Profit tab the next morning.** After the overnight refresh, the product card and chat both have your figures.

Plans and what each includes are on the [Luca AI pricing page](https://ask-luca.com/pricing).

## How product profitability analysis works with the rest of Luca {#works-with}

### Shopify {#with-shopify}

Shopify is the record of what sold. Luca reads orders, line items, refunds and returns, discounts and codes, payments, payouts and fees. From these it works out gross profit by product and variant and the refund rate.

### Amazon Seller Central {#with-amazon}

Luca reads Amazon orders, fees and settlements, and refunds. That gives you SKU economics after marketplace fees and net proceeds per unit, next to your Shopify figures.

### Xero and QuickBooks {#with-accounting}

Your books give the profit and loss from your accounting system. Product profit then sits beside gross and operating margin, so you can see how much of the month's margin each product explains. The [KPI reporting guide](https://ask-luca.com/product-docs/use-cases/kpi-reporting) shows how those figures go into one monthly pack.

### Ad accounts {#with-ads}

When Meta, Google Ads or Amazon Ads are connected, ad spend becomes the third contribution layer. The [ROAS analysis guide](https://ask-luca.com/product-docs/use-cases/roas-analysis) compares that spend with what your store recorded. For why platform figures and your profit drift apart, see [why ecommerce ROAS can mislead](https://ask-luca.com/blogs/declining-platform-roas-vs-true-profitability).

### Chat {#with-chat}

Ask about product profit in plain English, and Luca pulls from every relevant system into one answer. [Answers across Shopify, ads and Xero](https://ask-luca.com/product-docs/chat/cross-source-answers) explains how a single question reaches several sources.

## Who runs product profitability analysis, and how {#who-uses-it}

### Founders and CEOs {#founders}

A founder checks the product card before planning a range, a sale or a price change. The question is simple: which products should get more stock, more promotion or a new price? The [daily view of the whole business](https://ask-luca.com/product-docs/use-cases/see-the-whole-business) puts product profit next to sales and cash.

### CFOs and finance leads {#finance-leads}

A finance lead uses profit by channel and by SKU to explain the month. When revenue grows and margin falls, the product card shows which products, channels and costs moved. The difference between [cash flow, revenue and profit](https://ask-luca.com/blogs/cash-flow-vs-revenue-vs-profit) matters when presenting it.

### Operations and inventory leads {#operations-leads}

An operations lead looks at return rates and shipping costs by product. A fragile product with a high return rate points to packaging or courier changes. Once the range is settled, [inventory demand forecasting](https://ask-luca.com/product-docs/use-cases/inventory-demand-forecasting) helps plan stock for the products you keep.

## How Luca AI compares for product profitability analysis {#compare}

Luca ranks every product and SKU by what it keeps after refunds, discounts and fees, with Shopify and Amazon contribution side by side. It puts your Xero or QuickBooks ledger in the same place, so product profit and the accounts agree. Luca AI is the only platform in this table that does all three.

Product profitability analysis features, from each platform's public documentation:

| Platform | Product and SKU profit after refunds, discounts and fees | Shopify and Amazon profit per product | Xero or QuickBooks ledger in the same place |
|---|---|---|---|
| **Luca AI** | Yes | Yes | Yes |
| **Shopify** | Partly ([gross profit: net sales minus cost](https://help.shopify.com/en/manual/reports-and-analytics/shopify-reports/report-types/default-reports/profit-reports)) | Not in docs | Not in docs |
| **Lifetimely** | Partly ([gross profit excludes shipping and fees](https://help.useamp.com/article/1392-lifetimely-sales-analysis-reports)) | Partly ([Amazon stores, through a profit agent](https://help.useamp.com/article/1394-profit-agent-amazon-stores)) | Partly ([QuickBooks expense categories](https://help.useamp.com/article/1390-lifetimely-income-statement)) |
| **Triple Whale** | Partly ([product revenue before refunds](https://triplewhale.readme.io/docs/product-analytics-table)) | Partly ([estimated Amazon fees](https://triplewhale.readme.io/docs/summary-metrics-table)) | Not in docs |
| **Northbeam** | Partly ([marketing metrics for each SKU](https://docs.northbeam.io/docs/product-analytics)) | Not in docs | Not in docs |

*Yes: documented and built in. Partly: documented with a limit, shown in brackets. Not in docs: not found in the vendor's public documentation.*

### Why Luca AI is the stronger choice for product profitability analysis {#compare-stronger}

- **Profit after the costs that sit after the sale.** Luca takes refunds, discounts and fees off each product. Lifetimely's Products report [gross profit excludes shipping, transaction fees and marketing](https://help.useamp.com/article/1392-lifetimely-sales-analysis-reports). See [Lifetimely alternatives](https://ask-luca.com/blogs/lifetimely-alternatives).
- **Refunds counted down to product level.** Luca takes returns and refunds out of each product's revenue and margin. Triple Whale's product table gives [product revenue before shipping, taxes or refunds](https://triplewhale.readme.io/docs/product-analytics-table). See [Triple Whale alternatives](https://ask-luca.com/blogs/triple-whale-alternatives).
- **Every product, with your own cost rules.** Luca applies product, shipping and fee costs through rules agreed with your brand. Shopify's gross profit by product report [counts only variants with cost recorded at the time of sale](https://help.shopify.com/en/manual/reports-and-analytics/shopify-reports/report-types/default-reports/profit-reports).

*Competitor details checked against each vendor's public documentation on 7 November 2026. Features and plans change, so confirm with the vendor before you decide.*

## Limits and things to know {#limits}

- **You make the call.** Luca reads your data and never changes a price, a product, a discount or a listing. It shows what each product keeps; the decision stays with you.
- **No ad-by-ad credit for products.** The product card takes ad spend off as a contribution layer. It does not show which ad, creative or campaign drove a product's sales.
- **Set up for each brand.** The Luca team switches on profit by product and SKU for your brand and sets up the **Profit** tab with you.
- **Your cost rules shape the answer.** Product, shipping and fee costs come from the rules agreed at onboarding, so check them when your supplier or courier prices change.
- **Overnight, not live.** Every source refreshes once a day, so today's orders appear tomorrow morning.
- **Wholesale needs a custom source.** Wholesale sales come in through a custom connector the Luca team builds.

## Common questions {#common-questions}

#### What is product profitability analysis? {#what-is-product-profitability-analysis}

Product profitability analysis ranks products by what each one keeps after refunds, discounts, fees and shipping, rather than by sales. It shows which products pay for the business and which lose money on each order, so you can decide what to push, reprice, fix or drop.

#### How do I calculate profit per product? {#calculate-profit-per-product}

Take gross sales, subtract discounts and refunds to get net revenue, then subtract cost of goods, shipping and packaging, and payment and marketplace fees. What is left is contribution. Divide it by net revenue for the margin, and compare products on both figures.

#### What is the difference between gross profit and contribution margin per product? {#gross-profit-vs-contribution}

Gross profit takes only cost of goods away from net sales. Contribution margin also takes away the variable costs of selling, such as shipping, packaging and fees. On heavy or fragile products the gap between the two can be large, so contribution margin is the safer ranking.

#### Does Luca take refunds off product profit? {#refunds-in-product-profit}

Yes. Luca takes returns and refunds out of revenue and margin, down to product level, and shows each product's return rate on the **Profit by product** card. That makes a fragile product with frequent breakage refunds easy to spot.

#### How does Luca count discount codes? {#discount-codes}

Luca shows discount depth, discount-code usage and the profit impact of each promotion, and its standard measures include the discount rate. Discounts come off gross sales before net revenue, so a product that sells mostly on codes shows a lower margin.

#### Are shipping costs included in product profit? {#shipping-costs}

Yes. Luca applies shipping through your brand's own cost rules, agreed with the Luca team at onboarding, and the cost appears in the fulfilment layer of the profit and loss. Check those rules when your courier rates change.

#### Can I see Shopify and Amazon profit for the same product? {#shopify-and-amazon-profit}

Yes. The **Profit by product** card shows Shopify contribution and Amazon contribution in separate columns for each product, with a total across channels. Luca also calculates Amazon net proceeds per unit after marketplace fees.

#### Does Luca change my prices or remove products? {#changes-prices}

No. Luca is read-only. It reads Shopify, Amazon, your payment provider and your books, and writes to none of them. It shows what each product keeps; you decide whether to change a price, a discount or the range.

#### Can Luca tell me which ad sold a product? {#which-ad-sold-it}

No. Luca takes ad spend off as the third contribution layer, but it doesn't show which ad, creative or campaign drove a product's sales. For how ad spend compares with what your store recorded, use the ROAS analysis on the **Marketing** tab.

#### How do I switch on profit by product? {#switch-it-on}

Connect Shopify and any other sales channels, plus your payment provider and books. The Luca team then agrees your cost rules with you and switches on profit by product and SKU for your brand. The **Profit** tab fills after the next overnight refresh.

#### Which COGS method does Luca use? {#cogs-method}

Luca states the COGS method it uses for your brand: average cost, FIFO or landed cost. It is set in your cost rules. For imported goods such as ceramics, landed cost includes freight and duty, which can change a product's margin noticeably.

#### How fresh are the product profit figures? {#freshness}

Every source refreshes once a day, overnight. Each morning the **Profit** tab and chat show yesterday's orders, refunds and fees. Refunds can arrive weeks after a sale, so compare recent months with care.

#### Can I ask about product profit in chat? {#ask-in-chat}

Yes. You can ask in plain English, for example "which products lost money after ads and returns last month?", and Luca pulls from every relevant system into one answer. You can then ask follow-up questions about a single product.

#### Should I drop a product with a negative margin? {#drop-negative-margin}

Not straight away. First check whether refunds, discounts or shipping cause the loss, because those can often be fixed. Then check whether the product brings customers back. Drop it only if it still loses money on every channel after the fixes you can make.

## Further reading {#further-reading}

- [Contribution margin against gross margin](https://www.shopify.com/blog/contribution-margin-vs-gross-margin): the two formulas, and why contribution margin helps decide which product lines to keep.
- [Sales analytics and product performance](https://www.shopify.com/blog/sales-analytics): why the top-line sales figure hides how revenue splits across products.

## Related {#related}

- [Contribution margin against gross margin](https://ask-luca.com/blogs/contribution-margin-vs-gross-margin): which margin to use for product decisions.
- [AI agents for ecommerce](https://ask-luca.com/product-docs/use-cases/ai-agents-for-ecommerce): what an AI analyst does across your store and what you decide.
- [Shopify revenue forecast](https://ask-luca.com/product-docs/forecasting/revenue-forecast): plan revenue once you know which products to push.
- [KPI reporting](https://ask-luca.com/product-docs/use-cases/kpi-reporting): one set of definitions for profit in dashboards and exports.
- [Customer retention analysis](https://ask-luca.com/product-docs/use-cases/customer-retention-analysis): which products bring buyers back.
- [Luca AI product documentation](https://ask-luca.com/product-docs): every guide in one place.

*Updated 7 November 2026: first published, with how product profitability gets measured, the manual method, a worked example and 14 common questions.*