Cost of Goods Sold are the expenses directly associated with obtaining a product. When an ecommerce store purchases inventory from a third party, Cost of Goods Sold is equal to the expense associated with obtaining that inventory. If your store manufactures goods, COGS refers to the expenses directly associated with producing and selling products, for instance the cost of raw materials and packaging. This data is pulled from your ecommerce platform if you are on Magento, or from the COGS page in the application.

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