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Understand your COGS
Gia Gardner avatar
Written by Gia Gardner
Updated over 3 months ago

Cost of Goods Sold (COGS) refers to the direct costs involved in creating your products. It includes the expenses for like materials and any other costs associated with producing each item you sell.

Let’s think of it like this: imagine you’re making a handmade candle. You’ll need wax, a wick, fragrance oils, and a container to hold the candle. All of these components cost money. When you total up the expenses for each of these materials, that sum becomes your COGS for the candle.

Now, let’s apply this to your Etsy shop. Whether you’re creating custom t-shirts, handmade pottery, or art prints, you’ll need supplies like fabric, clay, or paper to bring your products to life. Each material has a price, and when you combine the costs of everything you use to create a product, you get your COGS for that item.

Understanding your COGS is important because it helps you price your products properly and make sure you're covering your production costs while still making a profit.

Tracking your Cost of Goods Sold (COGS) is crucial for accurately calculating your profitability and managing your business finances. ProfitTree offers multiple ways to track and upload COGS data efficiently.

Methods to Add COGS in ProfiTree

Option 1: Easy Integration with Printify and Printful

If you’re selling products through Printify or Printful, ProfitTree provides seamless integration to track your COGS automatically.

  • Navigate to the Integrations tab in your ProfiTree dashboard.

  • Connect your Printify or Printful account with just one click

  • Ensure you're using the SKUs provided by Printify or Printful when publishing your listings on Etsy for accurate tracking.

This method allows you to automate COGS tracking, saving you time and reducing the risk of manual errors.

Option 2: Manually Input COGS with or Without SKUs

If you don't use a SKU system, or if your products aren’t from Printify or Printful, you can manually add your COGS data in ProfitTree.

  • Go to the Catalog section of your ProfitTree account.

  • Select the product you want to add COGS for, and click the pencil icon next to it. Input your product costs and save your changes.

This method is flexible for users who prefer to manually manage their product costs without needing SKU-based tracking.

Option 3: Bulk Upload (Requires Existing SKUs)

If you have a large number of products and already use SKUs in your Etsy listings, you can upload your COGS data in bulk for faster management.

  • Navigate to the Catalog tab in ProfitTree.

  • Use the bulk uploader feature “Import COGS”to upload a spreadsheet with your COGS data for multiple products at once.

  • An instruction window will pop up reflecting how to use the COGS template.

  • Ensure your SKU system is in place for easy matching and tracking.

This method is particularly useful for stores with large inventories, as it speeds up the process of adding and updating product costs.

By using any of these methods, you can ensure accurate COGS tracking, giving you better insights into your profitability and helping you make data-driven decisions for your business.

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