MarginLog

Glossary / Cost of Goods Sold (COGS)

Cost of Goods Sold (COGS)

What you paid to acquire the item you sold.

Cost of Goods Sold is the total amount you spent to acquire and prepare an item for resale. This includes the purchase price, any repairs, cleaning, or direct costs needed to make the item sellable. It does not include your platform fees or shipping — those are separate costs subtracted when calculating net profit.

Example

You buy a pair of sneakers at a thrift store for $12. Your COGS is $12. If you also paid $3 to clean them before listing, your COGS would be $15.

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