Setting up Cost of Goods (COGS) for your products

What is Cost of Goods?

Cost of Goods Sold (COGS) or Product Cost is basically the total amount of money you spend acquiring the products you sell online. It's like your "wholesale" price, not including things like marketing, overhead, or shipping.

For example, if you sell a t-shirt for $20 and it cost you $8 to buy from a supplier, your COGS for that t-shirt is $8.

Tracking COGS accurately helps you calculate your profit margin: Remember, your profit is the difference between your selling price and your COGS. Understanding your COGS helps you set competitive prices and ensure you're actually making money on each sale.

See How TrueProfit import your COGS upon installing.

What's included in the Cost of Goods settings?

1. COGS Zones

COGS zones let you create different zones to manage your COGS based on the delivery destinations for specific product. Each zone will apply the COGS you set to the selected products only To see how to create a zone and manage your product's COGS by locations, follow this tutorial.

2. Export/Import buttons

The Export/Import buttons are helpful when you need to update your product's COGS or Handling Fees in bulk. This comes in handy when you have hundreds of product and need a way to copy/paste product costs quickly.
For a step-by-step guide on how to Export and Import COGS values for your product, follow this tutorial.

3. Filters for products and COGS values

In the Cost of Good settings, TrueProfit offers a search box and a few filters to help you view and manage just the products you want.
Search box: Search for products by its name. Any product name that match all or a part of your search term will be filtered out.
Product status: This filter includes the product's statuses from Shopify: Active, Draft, and Archived.
COGS source: Filter out COGS values that were edited Manually or synced from your Shopify admin. See how to manage COGS sources in this article.
Product COGS: Filter to display all products in your store or product with COGS value equals 0 only.

Setting product cost level for your products

In the Cost of Good page, the first column you see is the Set to level setting. This setting lets you manage product cost either on the product level or variant level.
If you choose the Variant level, the COGS amount you set will apply to each variant separately.
If you choose the Product level, all variants of that product have only one COGS value and setting.

By default, the Set to level setting is at the Variant level for all products in your store.

Editing Cost of Goods for products or variants

To change the value of your product costs, you can edit directly on the table for each product/variant for fixed COGS. When done, click the check icon to save your change.

If you want to see how to set up quantity-break for COGS, please read this article
If you need to add historical COGS for your products, please read this article

Applying your changes in product costs to all orders in the past

All the edits you made to a product/variant will be saved and applied to future orders only. If you want to apply new costs to orders in the past as well, you will have to recalculate all past orders in TrueProfit.

Recalculate past orders means applying new changes to all orders that match for all products. If you want to manage different product costs in the past, add COGS periods like the instruction above.

How to recalculate past orders for one or multiple products

Step 1: Select the products or variants that you want to recalculate using the checkboxes at the left of the table

Step 2: When a product or variant is selected, you can see the Re-calculate product past orders button showed up at the top of the table

Step 3: Click Re-calculate product past orders to start applying and recalculate COGS for all orders in the past of the selected products/variants

How to recalculate past orders for all products in your store

From TrueProfit version 7.1, the Re-calculate all past orders is removed from the COGS settings. Now, to apply your changes in COGS to all orders in the past, you will need to select all products in your store. Here's how:

Step 1: In the COGS table, select all products in the page

Step 2: You can see the option to Select all products that match your filter. Make sure you are filtering the correct list of product in your store, then click Select all filtered products to select all products in your store.

Step 3: Once all filtered products are selected, click Re-calculate product past orders to start applying and recalculate COGS for all orders in the past

Updated on: 26/07/2024

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