COGS (Cost of Goods Sold)
The direct costs of producing or purchasing the products you sell, including manufacturing, shipping to Amazon, and packaging. Essential for calculating true profit.
What Is COGS?
COGS (Cost of Goods Sold) represents everything you pay to get a product ready for sale - manufacturing cost, packaging, shipping to Amazon's warehouse, customs duties, and inspection fees.
Why Accurate COGS Matters
Without accurate COGS, you're guessing at profit. Many sellers only track the product unit cost and miss landed costs like freight, duties, and prep fees - leading to inflated profit estimates.
COGS Methods
Common accounting methods include FIFO (First In, First Out), LIFO (Last In, First Out), and weighted average. FIFO is most common for Amazon sellers since inventory typically ships in batch order.
How SellerLegend Helps
SellerLegend's Cost of Goods management lets you set COGS per product with support for different cost tiers, so your profit calculations reflect actual landed costs rather than estimates.
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