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CEO Briefing · For makers & e-commerce shops

Make it, sell it, see the margin.

If you make products and sell them online — sourcing your materials from a handful of different suppliers — you're almost certainly running two disconnected worlds: the storefront and the workshop. They don't talk, so you're guessing at stock, guessing at what things really cost, and guessing at what to buy. Connecting them is how you stop guessing. This is what that gets you, in plain terms.

6-minute read For the owner Make & sell, many suppliers
The bottom line, up front

Your online shop (Shopify) is brilliant at selling. It knows nothing about making your product, buying your materials, or what any of it costs. Connect it to an owned back-office system that does — and for the first time you get one honest view: real stock, the true cost and margin of every product, and a buying plan driven by what's actually selling. You keep renting the shopfront. You finally own the engine behind it.

01 · The problem

Two worlds that don't talk

Almost every maker-and-seller has the same split: the storefront takes the orders, and the workshop makes and ships them — with a person, a spreadsheet, and a lot of re-typing in between. That gap is where the money quietly leaks.

Disconnected · today
  • × Orders re-typed by hand into the back office
  • × Stock figures that are never quite right — you oversell
  • × No real idea what each product costs to make
  • × Buying materials on gut feel and panic
  • × Books that are weeks behind reality
Connected
  • A sale flows into the back office on its own
  • One honest stock figure, both sides in step
  • True cost and margin on every product
  • Buying that follows what's actually selling
  • Sales, costs and stock land in the books automatically
02 · What you get

One source of truth, four wins

When the storefront and the back office share one set of numbers, four things you've been doing by feel become things you can actually see.

📦

Stock you can trust

A sale online instantly lowers the stock figure in the back office — and that figure feeds back to the shop, so you stop selling things you don't have.

🎯

Margin you can see

Because the system knows your recipe and what you really paid for materials, you finally see what each product costs to make — and what you made on every sale.

🛒

Smarter buying

As sales draw materials down, the system flags what to reorder, from which supplier, and when — so you're neither out of stock nor sitting on dead cash.

📚

Books that keep up

Sales, cost of goods and supplier bills post themselves. Month-end stops being archaeology; you know where you stand more or less in real time.

03 · The big one

The margin you've never actually seen

Ask most makers "what's your margin on this product?" and the honest answer is a shrug and a guess. That's not carelessness — it's genuinely hard to know when you buy the same material from different suppliers at different prices. The connected system works it out for you.

How a true margin gets built

What you really paid suppliers Your product's recipe True cost to make Your selling price Real margin

What knowing your real margin lets you decide

Once it's real, the questions that used to be guesses get answers: which products to push, which to drop, where a supplier's price rise just quietly ate your profit, and whether that discount code is still making you money. This single number — true margin per product — is the whole reason to connect the two systems instead of running them apart.

04 · Buying

Purchasing that follows your sales

This is the part that matters most when you source from several suppliers. The back office tracks every supplier for a material — their price, their lead time, their reliability — and turns your actual sales into the right order, to the right supplier, at the right moment.

🔔

Reorder before you run out

When a material runs low — because the shop is selling — the system flags it for reorder. No more discovering you're out of a key part mid-build.

⚖️

Compare suppliers honestly

Ask several suppliers for a price on the same thing and see them side by side. Order from the best on price or speed for that run — not whoever you phoned last time.

💰

Stop tying up cash

Buy to match real demand instead of over-ordering "to be safe." Less money frozen in a storeroom, fewer stockouts — the balance you could never strike on a spreadsheet.

🗂️

Build supplier history

Over time you learn which supplier is actually cheapest and most reliable, from real records — leverage at your next price negotiation.

05 · The smart structure

Own the back office. Rent the front office.

Keep Shopify. Own what's behind it.

Picture your business as an iceberg. The front office — the Shopify storefront your customers see — is the tip above the waterline. It's genuinely excellent and a commodity worth renting; no need to leave it. The back office is the larger mass below: your recipes, your supplier relationships, your costs, your books — and where finance and the people who run things live. Put an open-source back office you own (ERPNext) there. No per-user licence, and your most valuable data — how you make things and what they cost — stays yours.

That's the principle running through every briefing in this series: rent the front office, own the back office. For a maker, your edge isn't the checkout page — it's the making and the buying below the surface. So that's the part to own.

06 · Honest about the work

When this is worth it — and when it isn't

This is a real system, not a plugin you flip on. The value scales with how much you make, how many suppliers you juggle, and how much you sell. Worth being straight about the cost.

It needs tidy product codes

The shop and the back office have to agree on what each item is. Getting your product codes straight first is the single biggest thing that makes it smooth.

Someone has to run it

Owned doesn't mean unmanaged. You'll either host it cheaply yourself or pay a small monthly fee, and have someone (in-house or a partner) look after it.

Overkill for a pure reseller

If you don't make anything, have one supplier and a few products, a spreadsheet is genuinely fine. The payoff comes from making and from supplier complexity.

Near-real-time, not magic

Sync is quick but not instant. On a flash sale of a nearly-sold-out item, keep a small buffer so you don't briefly oversell.

07 · What to do

Four steps to start

1

Tidy your product codes

Agree one code per item across the shop and the workshop. Boring, and the highest-leverage thing you'll do.

2

Put the recipes in

List what goes into each product and what you pay suppliers. This is what unlocks true cost and margin.

3

Connect the shop

Link Shopify to the back office so orders flow in and stock flows out, automatically. No more re-typing.

4

Watch the margin

Now you can see what really makes money. Push the winners, fix or drop the losers, and let buying follow sales.

If your tech or accounting team uses the technical terms — here's the translation
The owned back office=ERPNext (open-source ERP)
The online storefront=Shopify
Your product's recipe=Bill of Materials (BOM)
Make a batch / make on order=Work Order (make-to-stock / make-to-order)
The link between them=ERPNext Shopify connector
The decision

Stop running the shop and the workshop as two worlds. Connect them, own the engine, and finally see the margin on everything you make.