If you're wondering why your revenue in Klar looks different from Shopify — this article explains exactly why. Shopify uses non-standard revenue definitions that make it hard to understand where money is actually going. Klar uses a clean waterfall approach that gives you a much clearer picture.
Net Revenue is also the starting point for Klar's margin waterfall:
Net Revenue − COGS = CM1 CM1 − Logistics Costs − Transaction Costs = CM2 CM2 − Marketing Costs = CM3
Introducing common terminology
In Klar, we use a clean waterfall method to define our revenue metrics. Let's run through the waterfall and define each step.
Metric | Definition |
Gross Merchandise Value | The original selling price of a product before any deductions |
Price Reductions | The reduction in price offered to all customers (using the Compare At price in Shopify) |
Discount Code Value | The reduction in price through Discount/Voucher Codes and Cart Rules |
Shipping Revenue | The fee you charge customers to deliver their order |
Gross Revenue | Gross Merchandise Value − Price Reduction Value − Discount Code Value + Shipping Revenue → Think: The money the customer needs to pay |
Return Value | The Gross Revenue value of all items being returned → Think: The money you have to pay the customer back |
Taxes | The taxes you have to pay on your not-returned gross revenue |
Net Revenue | Gross Revenue − Return Value − Taxes → Think: The money available to cover your costs. Unless stated otherwise, all revenue numbers in Klar are Net Revenue. |
How Shopify defines revenue
Shopify uses three different revenue terms — Total Sales, Gross Sales, and Net Sales. Using the terminology above:
Shopify metric | Definition using Klar terminology |
Total Sales | Gross Merchandise Value − Price Reduction Value − Discount Code Value − Return Value + Shipping Revenue |
Gross Sales | Gross Merchandise Value − Price Reduction Value − Tax Value |
Net Sales | Net Revenue − Net Shipping Revenue |
Return date difference
Klar associates a return with the date the order was placed. Shopify associates it with the date the return was logged.
Example: An order placed on 5 May and returned on 15 May → Klar records the return on 5 May, Shopify on 15 May. This affects how returns impact your daily revenue numbers.
Gift voucher difference
Klar captures revenue from the sale of gift vouchers on the day of purchase.
Shopify only captures this revenue on the day the voucher is used.
💡 Tip: Set the payment costs for gift vouchers at 100% to avoid double-counting this revenue.
Example — Selling a pair of sneakers
Let's make this concrete.
Setup: Sneakers normally sell for €120 but are reduced to €100 via Compare At price (20% tax rate). A customer buys two pairs using a 10% discount code. Delivery costs €5. The total is €185. One pair is returned — reimbursement: €90.
Revenue in Klar
|
|
Gross Merchandise Value | €240 |
− Price Reduction Value | −€40 |
− Discount Code Value | −€20 |
+ Shipping Revenue | +€5 |
= Gross Revenue | €185 |
− Return Value | −€90 |
− Taxes | −€15.83 |
= Net Revenue | €79.17 |
Revenue in Shopify
|
|
Total Sales | €95 |
Gross Sales | €184.17 |
Net Sales | €74.17 |
Klar's waterfall makes it immediately clear where the drop-offs are happening — from original price through discounts, shipping, returns, and taxes — so you can spot trends and opportunities for improvement at each step.