Summary

Triple Whale and Shopify may show different Cost of Goods Sold (COGS) figures, primarily because they record returns differently. Triple Whale logs refunded COGS on the day the return occurs, whereas Shopify associates returns with the original order date. Additionally, third-party return apps can limit how fully Triple Whale can track restocked products, causing further discrepancies.

Why This Happens

1. Different Return Date Handling

   • Triple Whale deducts the COGS on the day the return is processed. For example, if a $100 order with $10 COGS is refunded on a subsequent day, Triple Whale shows a -$10 COGS on that later date.
   • Shopify records the return on the original order date, effectively adjusting the initial COGS rather than reflecting it on the refund day.

2. Impact of Third-Party Return Apps

   • When returns are handled by a third-party solution (e.g., Loop), Triple Whale may not receive all necessary return or restock details from Shopify’s API.
   • This partial visibility can lead to situations where Triple Whale and Shopify have different COGS tallies, especially for restocked items.

3. Timing of Updates

   • COGS in Triple Whale is updated as soon as a return is processed, ensuring real-time adjustment to that day’s COGS total.
   • Shopify’s approach can consolidate changes under the original order date, which might cause some confusion if you compare daily totals.

Example Scenario

1. On January 1, a customer places a $200 order with $20 in COGS.
2. On January 2, half of the order ($100) is refunded, corresponding to $10 in COGS.
   • Triple Whale
     • January 1: COGS remains $20 (original sale day).
     • January 2: Shows -$10 in COGS (refund day).
     • Net total across January 1–2: $10.
   • Shopify
     • January 1: Adjusts the original order’s data to reflect the refund.
     • Shows the refunded portion on January 1’s stats, effectively lowering total COGS for that day instead of impacting January 2.

How This Affects Reporting

• Confusion in Daily Totals: Users might see higher or lower COGS on a refund day in Triple Whale than in Shopify, which places refunds back on the original order date.
• Discrepancies in Historical Reporting: When reconciling older data, Shopify’s approach can make it look like COGS changed on a past date, while Triple Whale keeps that amount intact on the original sale date and only adjusts it on the refund day.
• Incomplete Return Tracking: Third-party return apps may not communicate restock events to Triple Whale, so a refunded item might still appear as if it was never returned.

How to Interpret the Data Correctly

1. Check the Day of Return

   • In Triple Whale, refunds appear with a negative COGS value on the date the return was processed.
   • In Shopify, the refund adjusts the original order’s COGS on the day the product was purchased.

2. Review the Net Total Over a Range

   • Look at combined totals (e.g., “Month to Date”) if you want to compare net COGS across both platforms. Summing the sales day plus the return day in Triple Whale often matches Shopify’s single-day adjustment.

3. Note Effects of Third-Party Return Apps

   • If using a solution like Loop, some return data may not sync back to Triple Whale. This can cause permanent discrepancies for those transactions.

4. Use Detailed Reports to Investigate

   • In Triple Whale, open the Summary Page and click on the COGS tile to see a breakdown of “COGS Orders,” “COGS Refunds,” and “Net COGS.”
   • In Shopify’s Analytics → Reports → Sales over time, add the “Order ID” column and look at the “Cost” column to see when refunds are credited.

By recognizing that Triple Whale assigns returned COGS to the day of the refund (while Shopify adjusts it back on the original order date) and that third-party apps might limit restock tracking, brands can more accurately compare and reconcile COGS across both platforms.