Question:
Why do some products show a profit margin of 100% in the app?
Answer:
If a product costs zero in Shopify, its profit margin will be 100% in the app. This is because the cost of goods sold (COGS) is zero, which means the gross profit equals net sales. As a result, the profit margin is calculated as (gross profit / net sales) * 100%, which in this case is (net sales / net sales) * 100%, or 100%. This is the case for any product with a cost of zero.
