COGS
COGS is the cost of producing or acquiring products for e-commerce sellers. It includes raw materials, labor, and overhead costs. COGS is important for calculating gross profit and setting prices.
COGS stands for Cost of Goods Sold. It refers to the direct cost of producing or procuring products. COGS includes the cost of raw materials, labor, and overhead costs that are directly related to the production or acquisition of the products.
For example, if you sells t-shirts through your website, their COGS would include the cost of the fabric, the labor costs to sew the shirts, and the shipping costs to get the shirts to their warehouse.
- Published
- March 20, 2023
- Updated
- November 8, 2024