> ## Documentation Index
> Fetch the complete documentation index at: https://docs.upstackdata.com/llms.txt
> Use this file to discover all available pages before exploring further.

# New Customer COGS: Cost of Goods for First-Time Buyers

> Track cost of goods sold for new customer orders. Calculate first-order gross margin and analyze acquisition cost structure by customer type.

<Tip>
  Cost of goods sold for orders placed by new customers—used to calculate new customer gross margin.
</Tip>

## Formula

<Info>
  **New Customer COGS** = **SUM** ( Product Cost ) **WHERE** [customer\_type = new\_customer](/data-dictionary/measures-and-dimensions#customer-type)
</Info>

### Formula Components

| Metric                                                                                       | Definition                                           |
| -------------------------------------------------------------------------------------------- | ---------------------------------------------------- |
| **Product Cost**                                                                             | Cost of products in the order from Shopify inventory |
| [**customer\_type = new\_customer**](/data-dictionary/measures-and-dimensions#customer-type) | Filters to orders from first-time buyers             |

| Metadata        |                                                                         |
| --------------- | ----------------------------------------------------------------------- |
| **Type**        | Currency                                                                |
| **Data Source** | [Shopify](/sources/shopify), [Upstack Costs](/dashboard/settings/costs) |
| **Aggregation** | Sum                                                                     |

***

## Example

Your store generated **\$18,340** in new customer COGS this month from 412 first-time orders:

| Segment             | COGS         | Revenue       | Gross Margin |
| ------------------- | ------------ | ------------- | ------------ |
| New Customers       | \$18,340     | \$47,200      | 61.1%        |
| Returning Customers | \$24,680     | \$68,400      | 63.9%        |
| **All Orders**      | **\$43,020** | **\$115,600** | **62.8%**    |

New customers have slightly lower margins due to higher average discount rates on acquisition offers.

***

## How It Works

New Customer COGS sums the product costs for all orders placed by first-time buyers during the selected period. Product costs come from Shopify variant cost data. This metric is essential for calculating whether your customer acquisition costs can be recovered from first-order profit.

***

## When to Use

| Scenario                  | Action                                                    |
| ------------------------- | --------------------------------------------------------- |
| Acquisition profitability | Subtract from NC Revenue to find first-order gross profit |
| CAC payback analysis      | Compare NC COGS + ad spend to NC Revenue                  |
| Segment cost structure    | Identify if new customers buy higher-cost products        |
| Margin by cohort          | Track if acquisition channel affects product mix          |

***

## Related Metrics

| Metric                                                                                     | Relationship                          |
| ------------------------------------------------------------------------------------------ | ------------------------------------- |
| [COGS](/reference/metrics/orders/cogs/cogs)                                                | All customers combined                |
| [Returning Customer COGS](/reference/metrics/orders/cogs/returning-customer-cogs)          | Repeat buyer comparison               |
| [New Customer COGS Per Order](/reference/metrics/orders/cogs/new-customer-cogs-per-order)  | Average cost per first-time order     |
| [New Customer Gross Revenue](/reference/metrics/orders/revenue/new-customer-gross-revenue) | Used with NC COGS to calculate margin |

[See all COGS metrics →](/reference/metrics/orders/cogs)