Break your P&L down by destination country in MerchantFlow. See revenue, COGS, ad spend, CAC, POAS, net margin, and period-over-period deltas per region.

Margin by Region

The Margin by Region page in MerchantFlow breaks your P&L down by destination country, so you can see which regions are pulling their weight, which are leaking margin, and which are above the break-even floor on paid spend. Every row carries its own revenue, COGS, ad spend, shipping, CAC, gross profit, net profit, net margin, and POAS, with optional period-over-period deltas.

What Does This Page Show?

For each country with orders in the selected timeframe, the table reports:

Orders - paid, non-canceled orders
Revenue - gross order revenue
COGS - cost of goods sold
Ad Spend - allocated ad spend (across all connected ad platforms)
CAC - ad spend divided by new customers acquired in that country
Shipping - fulfilment / shipping cost
Gross Profit - revenue minus COGS
Net Profit - gross profit minus ad spend, shipping, payment fees, allocated overhead (and tax when enabled)
Net Margin % - net profit divided by revenue
POAS - Profit on Ad Spend (gross profit / ad spend) for the region
Period Delta - net profit change versus the comparison period

How to Access Margin by Region

Navigate to Profit > Margin by Region from the main navigation.

The page respects the global timeframe selector. The comparison delta is computed against the previous period of equal length whenever your timeframe is a recognised preset.

Headline KPIs

Four KPI tiles summarise regional health:

Total Regions - distinct destination countries with orders
Best Margin - the country with the highest net margin (minimum 10 orders to qualify)
Lowest Margin - the country with the lowest net margin (minimum 10 orders to qualify)
Top Profit - the country contributing the most net profit dollars

The minimum-order threshold keeps tiny-volume countries from polluting the headline.

Top 10 Profit Chart

A horizontal bar chart ranks the top 10 countries by net profit. Countries with positive profit appear in teal (the top country highlighted), countries with negative profit appear in rose. The chart skips the "Unknown" country bucket so it never dominates the top-10 view.

Reading the Table

POAS (Profit on Ad Spend)

POAS measures gross profit per dollar of ad spend, not gross revenue per dollar of ad spend the way ROAS does. POAS is the more honest signal for media scaling because it accounts for COGS:

1.0x or higher - emerald (paid spend is profitable on a contribution basis)
0.0x to 1.0x - amber (paid spend is gross-margin-positive but does not cover its own cost)
Below 0.0x - rose (paid spend is destroying margin)

A country with no ad spend shows a dash for POAS.

CAC

CAC is the country's ad spend divided by the number of new customers acquired in that country during the timeframe. Countries with no attributable new customers show a dash. When channel attribution is unavailable, CAC may also be blank.

Net Profit Colour

Net profit cells are colour-coded:

Emerald - positive net profit
Rose - negative net profit (the region is losing money this period)
Slate - zero or near-zero

Net margin percent uses the same scheme, with emerald above 30%, rose below 0%, and slate in between.

Period Delta Pill

The right-hand delta column shows the percent change in net profit versus the previous period of the same length. A bright-green pill means the country grew profitably; a rose pill means net profit shrank.

Region Drilldown Modal

Click the chevron in any row to open the region detail modal. It includes:

Volume - orders, AOV, share of orders, share of revenue
Acquisition - new customers and CAC
Per-order economics - COGS, ad spend, shipping, and payment fees per order
Waterfall - full P&L from revenue through net profit
Net margin and POAS pills - colour-coded health signals
Period comparison - revenue delta, net profit delta, margin delta (in percentage points)

Use the View Orders button in the modal footer to jump to the Orders page filtered by that country.

Unknown Country Banner

If MerchantFlow has orders whose destination country is not yet known (typically older orders before the country backfill ran), an amber banner appears at the top of the page noting how many orders and how much revenue is in the Unknown bucket. The Unknown row remains in the table so the totals stay honest, but it is intentionally excluded from the chart and the best/worst-margin tiles.

Configuring the Waterfall

Two settings change the modal waterfall and the net profit number:

Treat tax as cost - controlled per tenant in Settings > Tax Rules. When enabled, sales tax is deducted before net profit. When disabled (the common case for stores that collect VAT on behalf of the buyer), tax is shown for reference only.
Overhead rate - your tenant-level overhead rate is applied per region in proportion to revenue. This includes any general OPEX that is not allocated to a specific region.

The header tooltip surfaces these assumptions on hover.

Frequently Asked Questions

How is a customer attributed to a country?

Customers are attributed to the destination country of their order, not their billing country, IP, or store domain. A customer can therefore appear in more than one country if they ship to different addresses over time.

Why is the CAC for a country higher than my blended CAC?

Blended CAC averages across the entire tenant. A single country's CAC may be much higher because ad targeting is regional, supply costs vary, or the region acquired fewer customers per ad-spend dollar. Use the per-region CAC to decide which countries to scale.

How is POAS calculated?

POAS is gross profit divided by ad spend, where gross profit is revenue minus COGS for orders shipped to that country. It is fundamentally different from ROAS (revenue / ad spend) and is the correct signal for sustainable scaling.

Why does the comparison column say "No comparison"?

The comparison delta requires a complete previous period of the same length. If your timeframe is a custom range that does not have a matching prior window, or if the data for the prior window has not been backfilled, the delta is omitted rather than estimated.

How accurate is the per-region ad-spend allocation?

Ad spend is allocated to regions in proportion to the attributed orders in each region. Platforms vary in how granular their country-level reporting is, but the aggregate matches what you spent. If your attribution data is sparse, region-level ad spend will be coarse.

What about the fulfillment cost estimate?

When fulfillment cost is not yet pulled from a 3PL like Speedfulfill, MerchantFlow uses your configured fulfillment cost method - a percentage of product cost, or per-unit rates per product (optionally varied by destination country with country fulfillment rates). With the optional estimation setting enabled, recent orders missing carrier data receive an estimated cost, clearly disclosed. Once you connect a real 3PL, actual shipping cost per order takes over.

Related Guides

P&L Overview - the headline waterfall
Ad Spend - ad cost across all connected platforms
COGS Management - keep gross profit honest
Fulfillment Costs - how the fulfillment figure is produced
Country Fulfillment Rates - per-destination rates and quantity tiers
Orders - per-order detail filterable by country
Attribution - how channels are assigned
Unit Economics - blended CAC, LTGP, and break-even floor

Last updated: July 31, 2026

Margin by Region - Country-Level Profitability and CAC