Glossary · Finance
What is Cost of goods sold (COGS)?
Cost of goods sold is the direct cost of the products you sold in a period: what you paid for them, plus freight and duty in, or the materials and labour to make them.
It is the figure subtracted from sales to get gross margin, and the numerator of inventory turnover. The valuation method (FIFO, weighted average) changes COGS when costs move.
Formula
COGS = opening inventory + purchases − closing inventory
Shopify App · 3PL Partner API · US$39/mo entry plan
See Stokrio with your own data
Install Stokrio from Shopify and your products and orders flow in. Running a 3PL? Start with the demo.