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Glossary · Profit

Cost of goods sold (COGS)

What the products sold cost the store to buy or make. It does not fall when the price does, which is why discounts eat margin so fast.

Sales€7,940
Cost of goods−€2,103
Share of sales26.5%
Per order€30.93
Worked on the example store’s July 2026, which adds up line by line.

01 / How it is worked out

The formula

Formula

Units sold × the cost of one unit, product by product

Example

The example store’s goods cost €2,103 in July 2026 — 26.5% of sales.

02 / Why it matters

What it changes in a decision

  • Cost of goods is the largest cost in most stores and the one most often guessed. A percentage typed once is an estimate; the cost entered per product in Shopify is a measurement.

  • Because it is fixed per unit, a 20% discount on a product with a 30% margin gives away two thirds of the profit on every unit sold.

See every one of these on your own store.

Profflow works them out from your orders, ads and costs, order by order — read-only, in about ten minutes.