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Glossary · Costs & pricing

COGS

Cost of goods sold

The cost of the products you sold in a period: what you paid to buy or make them, plus costs to get them into inventory, such as inbound freight and duties.

Why it matters for a product launch

Your cost per unit is the starting point for wholesale and retail pricing, so it needs to be complete before you quote a buyer.

General definition for education only, not legal, tax or customs advice.

Related terms

  • Landed cost: The full per-unit cost of getting an imported product into your inventory: product cost plus freight, duties and tariffs, insurance, brokerage and fees.
  • Markup vs. margin: Markup is profit as a percentage of cost; margin is profit as a percentage of the selling price. A 100% markup is a 50% margin.
  • Keystone pricing: Setting the retail price at twice the wholesale cost: a 100% markup, which is a 50% margin.

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