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How It Works

How MarginOS turns raw Shopify, ad, and cost data into numbers you can trust. These guides explain the data pipeline, the profit model behind every figure, and how actual-vs-estimated costs are tagged — so you always know where a number came from before you act on it.

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The Defensible Profit Model: how MarginOS grades cost accuracy

MarginOS grades every cost behind your margin as measured, declared or modeled, and labels which one produced each number. It never invents a missing cost — an unknown...

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How MarginOS calculates Gross Profit (CM1)

MarginOS calculates Gross Profit — also called Contribution Margin 1 (CM1) — as net revenue plus shipping revenue, minus COGS, fulfillment costs, payment fees and refund fees. It...

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Data Trust levels: how MarginOS grades margin reliability

Data Trust grades every SKU margin HIGH, MED or LOW by the strength of the evidence behind its costs, so you know which profit numbers are safe to...

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How MarginOS calculates LTGP

MarginOS calculates LTGP as the average contribution profit a customer generates in their first 90 days, summed from the real Gross Profit on each of their orders rather...

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How MarginOS calculates CAC Payback

MarginOS reports CAC payback as the share of recently acquired customers who earn back their acquisition cost within your own target window, with the median days taken across...

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How MarginOS resolves blended CAC

MarginOS resolves blended CAC from your real paid ad spend divided by the new customers those paid channels acquired, with organic customers excluded from both halves. When a...

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How MarginOS calculates channel LTGP:CAC

MarginOS calculates channel LTGP:CAC as the gross profit a channel’s customers generate in their first 90 days divided by what it cost to acquire one of them, using...

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How MarginOS assigns each order to a channel (attribution)

MarginOS credits every DTC order to exactly one acquisition channel, and every customer to the channel that won their first-ever order. Orders it cannot attribute go to Unknown...

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Why MarginOS shows “N/A” instead of a made-up number

When MarginOS cannot compute a figure honestly it shows N/A — never a default, an industry average or a zero. A missing input produces a missing answer; a...

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How MarginOS calculates MER

MarginOS calculates MER as revenue divided by ad spend, for the whole account and per channel, and classifies it against a target band you set. It is the...

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How MarginOS calculates Gross Margin %

Gross Margin % is your Gross Profit (CM1) expressed as a share of net revenue — after product, fulfillment, payment and refund costs, and before any advertising.

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How MarginOS turns raw data into your margins (the pipeline)

MarginOS assembles margins from sources that disagree — orders, warehouse invoices, ad platforms — under four guarantees: source records are never rewritten, every screen reads one number, costs...

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How MarginOS flags High Velocity, Low Yield

High Velocity, Low Yield marks a product that sells fast for your store and earns a thin margin percentage — the combination that multiplies a pricing problem by...

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How MarginOS flags Too Close to Cost

Too Close to Cost marks a fast-selling product that is still profitable but earns less per unit than its own landed cost justifies. The floor scales per item...

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