COGS
🚀AdvancedCOGS (Cost of Goods Sold) is the direct cost of products you sell — manufacturing, materials, inbound shipping. Necessary for POAS calculation.
Aliases: Cost of Goods Sold · Trošak prodatih proizvoda
What it is
COGS (Cost of Goods Sold) is the direct cost of the products you sell - manufacturing, materials, and inbound shipping, excluding marketing or other operating costs. Margin is calculated as (Revenue - COGS) ÷ Revenue, and that number is the basis for every decision about how much you can afford to spend on ads per sale.
My take
I've seen accounts where a product with a 4x ROAS was quietly losing money on every sale because nobody had entered COGS into the feed - without that number, a ROAS dashboard is a nice picture that says nothing about profit.
Example
A product sells for €50, and COGS (unit cost plus inbound shipping) is €30 - margin is (50-30)÷50 = 40%, the floor below which a discount pushes the sale into a loss.
Read in depth
POAS vs ROAS →Related terms