Cost of goods sold is how much it costs to you, the business, of the items sold. CoGS are essential for calculating profit margins and gross profit. Products with lower CoGS (but less popular than higher CoGS) may be good candidates for more promotion, since you will end up keeping more of the profits.

CoGS = Cost per item

In Shopify, CoGS is input as a cost per item for each product variant.

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