How to Set Up Variable Costs in WooCommerce with ProfitBlue

Running an online store means managing costs that change with your sales. Unlike rent or software subscriptions, these expenses grow as your revenue grows — and they’re known as variable costs.

In this guide, we’ll explain what variable costs are, why they’re crucial for accurate profit tracking, and how you can easily set them up in WooCommerce using the ProfitBlue financial reporting plugin.

What Are Variable Costs?

Variable costs are expenses that fluctuate based on your store’s sales volume. The more you sell, the higher these costs become — and vice versa.

For example:

• If your store earns $1,000 in revenue and your variable cost is 10%, you’ll spend $100.
• If revenue grows to $10,000, that same 10% equals $1,000 in costs.

So while the percentage remains constant, the absolute amount changes with sales.

Common examples of variable costs in WooCommerce include:

• Payment gateway fees (Stripe, PayPal, etc.)
• Packaging and fulfillment costs
• Commissions or affiliate payouts
• Ad spend (Meta, Google Ads)
• Shipping or handling fees that depend on sales volume

Tracking these accurately ensures that your profit and loss reports reflect real profitability — not just revenue.

Why Variable Cost Tracking Matters

Ignoring variable costs leads to misleading profit data. You might think your store is highly profitable, but if ad spend or transaction fees increase alongside sales, your margins could be shrinking.

By entering variable costs in ProfitBlue, you can:

• See how much each sale truly costs you.
• Identify when marketing or payment fees eat into profit.
• Plan budgets that align with real business growth.
• Compare performance across months with consistent metrics.

How to Add Variable Costs in ProfitBlue

Setting up variable costs in the ProfitBlue WooCommerce plugin is quick and intuitive:

1. Open Data Settings → Navigate to the Custom Costs & Income tab.
2. Click Add More → Create a new variable cost, such as Commission Cost or Packaging Fee.
3. Choose the Type:
   • Percentage of Revenue – Ideal for costs that scale with sales, such as ad spend or payment fees.
   • Fixed Amount per Order – Perfect for flat per-order expenses (e.g., $2 per shipment or package).
4. Enter the Value → For example:
   • 10% (if it’s percentage-based)
   • $2 (if it’s a per-order fee)
5. Select the Period → Apply it to the current month, year, or custom range.
6. Save Changes → ProfitBlue automatically calculates and displays these costs in your profit and loss reports.

Example

Let’s say you set up a 10% commission cost.
If your total revenue is $170,000, your variable cost will be $17,000.

If instead you set a $10 per order fee and had 46 orders, ProfitBlue will calculate $460 automatically — all reflected in your reports in real time.

The Power of Automation

Once you add variable costs, ProfitBlue automatically:

• Updates the P&L report for every order and period.
• Adjusts totals as your sales grow.
• Combines variable costs with fixed and product costs (COGS) for a complete financial picture.

You can now clearly see how each cost type impacts your gross and net margins.

Final Thoughts

Variable costs are an essential part of running a WooCommerce store. By setting them up in ProfitBlue, you gain transparency into how your expenses scale with sales — and ensure your financial reporting stays accurate month after month.

When combined with fixed costs, income, and COGS, variable costs help you see the full story of your business profitability. With ProfitBlue, you can make smarter decisions, control costs, and grow your WooCommerce store with confidence.