Amazon Cost of Goods Sold (COGS)

cost_of_goods

Overview

Amazon Cost of Goods Sold (COGS) represents the direct costs of Amazon orders attributable to the production of the goods sold.

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Amazon COGS = Total Amazon-Reported Cost of Goods Sold

The calculation is based on data from the Orders table.


Detailed Breakdown

The formula above is derived from the following components:

  • Cost of Goods = SUM(cost_of_goods) --> Orders table
  • Amazon Sales = where platform = 'amazon'

Insights and Actions

Amazon COGS helps you understand the direct cost of fulfilling Amazon orders, making it essential for evaluating profitability:

  • Monitor Profit Margins: Compare Amazon COGS against Amazon Sales to calculate gross profit and track margin changes over time.
  • Evaluate Product Performance: Identify high-cost products that may need pricing adjustments or supplier renegotiation.
  • Inform Inventory and Purchasing Decisions: Use COGS trends to optimize buying strategies and prevent overspending on low-margin items.

Related Metrics

  • Amazon Sales (Order Revenue): Helps calculate gross profit by pairing revenue with associated cost.
  • Amazon Product Sales: Useful for comparing top-line sales against cost to determine product-level profitability.
  • Gross Sales: Total sales across all platforms, allowing you to benchmark Amazon’s cost efficiency compared to other channels.

Example Use

Prompt

What was my Amazon cogs yesterday?

Response

Query

SELECT
  SUM(ot.cost_of_goods) AS amazon_cogs
FROM
  orders_table AS ot
WHERE
  ot.platform = 'amazon'
  AND ot.amazon_fulfillment_status != 'Canceled'
  AND ot.event_date = CURRENT_DATE() - 1