Getting a product from your supplier to Amazon requires investment. This investment is your Cost of Goods Sold, or COGS.
What are COGS?
COGS refers to the direct costs of producing goods sold by a company. This amount includes the cost of the materials and labor directly used to create the good. Within Flywheel, we also encourage you to include any shipping costs to get your product to a fulfillment center. You don't need to include FBA selling or shipment fees, we'll get those directly from Amazon.
COGS excludes indirect costs such as overhead, ad spend, and marketing.
How do we use COGS in Flywheel?
COGS data helps us provide a holistic view of how your Amazon business is performing. Upload this information on the Product Settings page to unlock additional features and gain insights in Flywheel, such as:
Estimated Gross Margin: Available at product level on the Product Metrics page
Pre-Ad Gross Margin: Understand your margins before factoring in ad spend. Use this metric on the Campaigns page to help you set MACS
MACS Calculator: COGS are required to use this functionality.
Campaign Creator: COGS will help the Campaign Creator provide more accurate MACS suggestions.
How do you enter COGS?
Learn how to set COGS in Flywheel here.
At this time we do not include VAT in our calculations and recommend including VAT in your COGS.