Product Margin Per Order: Average Profit Per Transaction

The average profit from products per order, calculated before fulfillment and transaction costs.

Formula

Product Margin Per Order = Product Margin ÷ Orders

Formula Components

Metric	Definition
Product Margin	Gross revenue minus cost of goods sold
Orders	Total number of completed orders in the period

Metadata
Type	Currency
Data Source	Shopify
Aggregation	Average

Example

Your store processed 1,247 orders in January with a total Product Margin of $31,175:

Metric	Value	Calculation
Gross Product Revenue	$87,290	Sum of product sales
Product COGS	$56,115	Sum of product costs
Product Margin	$31,175	$87,290 − $56,115
Product Margin Per Order	$25.00	$31,175 ÷ 1,247

How It Works

Product Margin Per Order divides total Product Margin by Order Count. Product Margin is the difference between Gross Revenue and COGS. This metric isolates product profitability before fulfillment costs, transaction fees, and other variable expenses are applied.

When to Use

Scenario	Action
Evaluating product mix profitability	Compare margin per order across product categories
Setting free shipping thresholds	Ensure threshold covers product margin
Analyzing bundle performance	Check if bundles improve per-order margin
Identifying margin erosion	Track trends to catch declining profitability early

Metric	Relationship
Product Margin	Numerator: total margin across all orders
Orders	Denominator: order count for averaging
COGS Per Order	The cost component per transaction
Gross Revenue	Revenue component of the margin calculation

See all Product Margin metrics →

Product Margin %NC Product Margin

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​Formula

​Formula Components

​Example

​How It Works

​When to Use

​Related Metrics

Formula

Formula Components

Example

How It Works

When to Use

Related Metrics