Cost accounting
What is true COGS in ecommerce?
COGS is often treated as a static product cost, but real ecommerce margin depends on the full cost required to get a product ready to sell.
COGS should reflect real product economics
A basic COGS model may include only supplier cost. A better model can include inbound freight, duties, packaging, prep, and other costs that scale with inventory.
The more accurate the cost model, the more reliable your margin and advertising decisions become.
- Supplier cost
- Inbound freight
- Duties and tariffs
- Packaging and prep
- Product-specific adjustments
Why stale COGS breaks reporting
If product costs changed but the dashboard still uses old values, the team can scale products that are less profitable than they appear.
COGS needs an owner, an update cadence, and a way to trace changes back to the period where they apply.
- Review cost changes monthly
- Track manual adjustments
- Separate temporary and permanent changes
Connect COGS to SKU-level reporting
A useful profit system maps each order line to the correct product cost. That lets operators review margin by product, bundle, channel, and campaign.
- Map products consistently
- Handle bundles explicitly
- Review unmapped orders before trusting reports
Put it to work
Turn the guide into a profit operating view.
MarginCore connects ecommerce sales, ad spend, COGS, fees, refunds, and operational adjustments so teams can review profit with less spreadsheet cleanup.