Setting "Variable costs" in Reaktion (unit economics)

For accurate profit analysis, it's crucial to input detailed cost data into Reaktion. This approach is essential for understanding your unit economics in your e-commerce business. If specific costs aren't set, you'll still enjoy improved tracking, revenue overview, etc., but detailed input leads to more precise insights.

In short; the better input, the better output. 

Link to setting costs:

https://advertiser.reaktion.com/setup/cost-settings?step=0

You find the "Cost settings" in the left side menu. Click on "Setup" and "Cost Settings". You can always edit the costs and it will take affect after saving. 

Overview: You can click "Edit now" or the tabs above to set costs for the different elements.

Please note you can set this for all your shops. Ex. if you have different product costs or shipping costs for your different shops / markets. 

1. COGS / Cost of Goods sold / Product costs:

Link: https://advertiser.reaktion.com/setup/cost-settings?step=1

Definition: Cost of Goods Sold (COGS) refers to the expense incurred for a product by distributors, manufacturers, or retailers. Note, COGS should be set excl. VAT. 

Integration with E-commerce Platforms: If your COGS data is available on platforms like Shopify, Magento2, or WooCommerce, we can seamlessly import it into Reaktion. Our system refreshes COGS four times daily, ensuring that all pricing updates are automatically synchronized. 

Alternative Data Sources: In cases where COGS is managed through a different system, you can provide the data to us in two ways: CSV File: Share a CSV file containing your SKU number, retail price, and COGS. XML Feed: Send an XML feed with the necessary product information.

Handling Products Without COGS: For items that lack specific COGS data, you have the option to apply a default "Cost of Sales" percentage. This ensures that all your products are accounted for in the cost analysis.

Once you have set costs, you are able to verify the product level costs here;
https://advertiser.reaktion.com/setup/product-settings

If a product doesn't have a product-level cost, we will use the "backup / default" COGS percentage 

2. Payment fees:

Link: https://advertiser.reaktion.com/setup/cost-settings?step=5

You can define overall average payment fees or you can via "Set payment fee per payment provider" define payment fees per payment gateway.

3. Pick & Pack (packaging)

Link; https://advertiser.reaktion.com/setup/cost-settings?step=4

Set packaging costs, pick & pack per order and optionally set a fixed cost per item in an order.  

4. Cost of shipping and handling returns:

Link: https://advertiser.reaktion.com/setup/cost-settings?step=2

You're able to assign costs to handling returns and also a cost if you offer free returns and want to assign a costs for these.

Futhermore, you can set a "handling" fee - ex. a labor cost to handling the returns per order. Both are optional. 

5. Shipping:

Link: https://advertiser.reaktion.com/setup/cost-settings?step=2

Define your shipping costs per order. Note, if you want more advanced shipping cost settings, please see our "Custom shipping zones" below. 

6. Custom shipping zones. 

Link: https://advertiser.reaktion.com/setup/cost-settings?step=3

Define your shipping costs per order. You can define costs based on shipping provider, location, order value, weight intervals.