What is COGS? The cost of goods sold and how to work it out for your store
The ArabyBot teamOfficial Meta partner · written from our own platform dataOn this page 4
The short answer
Cost of goods sold = opening stock + purchases − closing stock. For a small store, approximately: cost per piece × pieces sold. Sell 300 pieces costing 40 each and COGS is 12,000.
Also asked as: «cogs يعني ايه» · «تكلفة البضاعة المباعة معادلة» · «تكلفة البضاعة المباعة مجمل الربح»
Why does Cost of goods sold matter to a seller?
Because sales minus the cost of goods sold is gross profit, which pays for ads, shipping and salaries. Whoever does not know it may think they profit while losing.
Cost of goods sold in ArabyBot
In ArabyBot Store you enter each product's «Cost (for profit)», which customers never see, and «Reports» shows the estimated profit: selling price minus cost for what you sold. The monthly sales report.
Frequently asked questions
Are shipping and ads part of COGS?
Not in usual accounting; they are operating expenses taken after gross profit. But include them in the cost per order when pricing. The product price calculator.
How does gross profit differ from net profit?
Gross profit = sales − COGS; net profit = gross profit − every other expense.
Related terms
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