Ecommerce Income Statement Template

Each month, pull your figures from your ecommerce platform (Shopify, WooCommerce, or your marketplace dashboards) and your ad platform reports. Enter revenue by channel, then work down through COGS, platform fees, ad spend, fulfillment, and returns. The order matters: entering returns accurately is especially important because they hit both revenue (if you track net revenue) and potentially COGS (if you count returned inventory as recovered). Gross profit, gross margin percentage, and net income all calculate automatically. Once the monthly sheet is complete, the Annual Summary and Key Ratios sheets update without any additional steps.

A proper ecommerce income statement follows the cost structure of online retail, not the generic template most accounting software produces by default. Revenue should be separated by channel because DTC and marketplace sales have fundamentally different economics: a DTC sale through your own Shopify store might cost 2.9% in payment processing and whatever you spent on the ad that drove it; that same sale through Amazon costs 8–15% in referral fees plus FBA fulfillment on top. Returns and refunds need their own line — not folded into revenue as a deduction — because they represent an operational metric (return rate) and a financial one (recovered cost of goods). Advertising belongs in operating expenses, not COGS, but it's the highest-leverage line item in the whole statement and deserves its own group rather than being buried in a catch-all.