E-commerce Glossary

COGS (Cost of Goods Sold)

Direct cost of products sold, excluding marketing expenses.

COGS includes product purchase price, manufacturing costs, packaging, and direct logistics. For a product sold at $80 with a COGS of $30, the unit gross margin is $50. COGS is essential for calculating gross margin and contribution margin. Without accurate COGS tracking, it's impossible to know whether your sales are actually profitable.

Related terms

AOV (Average Order Value)Average amount spent per order in your store.See definition ARPU (Average Revenue Per User)Average revenue generated per user over a given period.See definition Blended CACAverage acquisition cost including all marketing channels.See definition Blended ROASOverall return on all advertising spend combined.See definition CAC (Customer Acquisition Cost)Total cost to acquire a new customer.See definition Churn RatePercentage of customers lost over a given period.See definition
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