Average product cost per order—useful for understanding the cost structure of a typical transaction.
| Metric | Definition |
|---|
| COGS | Total cost of products sold |
| Total Orders | Number of orders placed |
| Metadata | |
|---|
| Type | Currency |
| Data Source | Shopify, Upstack Costs |
| Aggregation | Ratio |
Example
Your store had $47,500 in COGS across 1,250 orders this month:
| Metric | Value |
|---|
| COGS | $47,500 |
| Total Orders | 1,250 |
| COGS Per Order | $38.00 |
How It Works
Divides total COGS by the number of orders to calculate the average product cost per transaction. This metric helps you understand how much of each order’s value goes to product costs, enabling better pricing and margin decisions.
When to Use
| Scenario | Action |
|---|
| Pricing decisions | Ensure AOV covers COGS per order plus target margin |
| Unit economics | Calculate per-order profit contribution |
| Segment analysis | Compare to NC and RC COGS per order |
| Cost monitoring | Track if product costs per transaction are rising |
| Metric | Relationship |
|---|
| COGS | Total product costs (numerator) |
| Total Orders | Order count (denominator) |
| New Customer COGS Per Order | First-time buyer average |
| Returning Customer COGS Per Order | Repeat buyer average |
| Net AOV | Revenue per order to compare against |
