Cost of goods sold as a percentage of gross revenue—the complement of gross margin rate.
| Metric | Definition |
|---|
| COGS | Total cost of products sold across all orders |
| Gross Revenue | Total revenue before discounts and refunds |
| Metadata | |
|---|
| Type | Percentage |
| Data Source | Shopify, Upstack Costs |
| Aggregation | Ratio |
Example
Your store generated $185,000 in gross revenue with $68,450 in product costs this quarter:
| Metric | Value |
|---|
| Gross Revenue | $185,000 |
| COGS | $68,450 |
| COGS Gross Rate | 37.0% |
How It Works
This metric divides total COGS by gross revenue, then multiplies by 100. COGS Gross Rate + Gross Margin Rate always equals 100%. A lower rate indicates higher product margins, while increases suggest rising supply costs or a shift toward lower-margin products.
When to Use
| Scenario | Action |
|---|
| Quick margin check | Subtract from 100% to find gross margin |
| Supplier negotiations | Monitor impact of cost changes on margin |
| Product mix analysis | Track if sales shift toward higher-cost items |
| Period comparison | Compare cost structure across months/quarters |
| Metric | Relationship |
|---|
| COGS | Dollar value used in numerator |
| Gross Revenue | Revenue baseline in denominator |
| New Customer COGS Gross Rate | First-time buyer cost structure |
| Returning Customer COGS Gross Rate | Repeat buyer cost structure |
| Gross Profit | Revenue minus COGS |
