Cost of goods sold (COGS): Definition, Formula & Why It Matters
Also called: COGS, Cost basis
Cost of goods sold (COGS) is the direct cost of the items you sold in a period: what you paid for the gear, plus directly attributable costs like repairs, setup, and inbound shipping. It is the foundation of every profit and margin calculation.
Cost of goods sold (COGS) formula
Example
If a guitar cost you $200 and you put $50 into a setup, its COGS is $250.
Why it matters for Reverb sellers
If your COGS is wrong, every downstream number, gross margin, net profit, ROI, is wrong too. Sellers who ignore repair and inbound shipping costs consistently overstate their profits.
How Verbstack helps
Verbstack lets you enter COGS per item so your margins and P&L reflect what your inventory actually cost you.
Track this on every order, automatically.
- ✓ Real fees, margins, and profit on every Reverb sale
- ✓ COGS and inventory tracked for you, no spreadsheet
- ✓ Full history and a live monthly P&L
Free forever to get started. No credit card required.
See this number on every order.
Connect your Reverb shop and Verbstack tracks your fees, margins, and profit automatically.
Get started freeFree forever to get started. No credit card required.