Why a COGS Tracker Matters
COGS tracking is fundamental to accurate profitability analysis. By systematically recording every product cost component—from supplier purchase price through inbound shipping, tariffs, packaging, and prep costs—you gain visibility into your true product cost. This enables accurate pricing, identifies cost-saving opportunities, calculates accurate margins, and ensures tax compliance. Without proper COGS tracking, you're operating blind on profitability.
COGS Components to Track
| Component | Description | Typical % | Example |
|---|---|---|---|
| Product Cost | Unit price from supplier | 50-70% | $5.00/unit from China manufacturer |
| Inbound Freight | Shipping to your warehouse | 10-20% | $1.50/unit ocean freight |
| Tariffs/Duties | Import taxes on products | 5-15% | $0.75/unit import duty |
| Packaging | Boxes, tissue, fillers, labels | 5-10% | $0.80/unit packaging |
| Prep Labor | Assembly, quality check, labeling | 2-8% | $0.30/unit direct labor |
| Landed Cost | Total all-in cost per unit | 100% | $8.35/unit total COGS |
What's Included in Our COGS Tracker
- Shipment Tracking: Track each product shipment with date, quantity, and costs
- Cost Breakdown: Columns for supplier cost, freight, tariffs, packaging, labor
- Per-Unit Calculations: Automatic calculation of COGS per unit (total cost ÷ units)
- Inventory Tracking: Track units received, units sold, units remaining
- Valuation Methods: Tabs for FIFO, LIFO, and weighted average methods
- Monthly Summaries: Automatic calculation of monthly COGS totals
- Landed Cost Analysis: Shows cost breakdown by percentage and identifies cost drivers
- Supplier Tracking: Compare costs across different suppliers
- Tariff Management: Calculate and allocate tariffs across shipments
- Product-Level COGS: Track COGS separately by product/SKU
How to Use the COGS Tracker
Step 1: Create Shipment Record
When you receive a shipment, create a new entry with: shipment date, product name/SKU, supplier, quantity received, and expected delivery cost.
Step 2: Enter Product Cost
Record the unit cost from your supplier invoice. Example: 1,000 units at $5.00 each = $5,000 product cost.
Step 3: Add Freight Costs
Allocate inbound shipping cost to units. Example: $1,500 ocean freight ÷ 1,000 units = $1.50/unit.
Step 4: Include Tariffs
Add import duties and tariffs. Example: $750 import duty ÷ 1,000 units = $0.75/unit.
Step 5: Allocate Packaging
Record packaging material costs. Example: $800 packaging ÷ 1,000 units = $0.80/unit.
Step 6: Calculate Landed Cost
The tracker automatically calculates total COGS per unit: $5.00 + $1.50 + $0.75 + $0.80 = $8.05/unit landed cost.
Step 7: Use for Pricing & Profitability
Now you know your true cost. Use this for pricing (add markup), margin calculation, and profitability analysis.
COGS Tracker Best Practices
- Track by Shipment: Record each shipment separately to track cost fluctuations over time
- Update Regularly: As tariffs, freight, or pricing changes, update calculations immediately
- Verify Accuracy: Compare calculated COGS to actual invoices to catch errors early
- Monitor Trends: Track COGS month-to-month to spot rising costs and plan mitigation
- Calculate by Product: Different products have different landed costs. Track separately for accurate analysis
- Review Suppliers: Compare costs across suppliers quarterly to negotiate better rates
- Reconcile to Inventory: Ensure COGS tracker matches your inventory management system
Using COGS for Profitability Analysis
Product Gross Profit = Selling Price − COGS
Gross Profit Margin % = (Selling Price − COGS) ÷ Selling Price × 100
Example: Product sells for $25. COGS is $8.05. Gross profit = $16.95. Gross margin = 67.8%. After accounting for platform fees (15-25%), advertising, and shipping, determine true profitability.
Download Our Free COGS Tracker
Choose your preferred format to start tracking COGS accurately:
- Shipment-Based COGS Tracker (Excel): Track each shipment with automatic per-unit calculations
- Monthly COGS Summary (Excel): Consolidate all shipments into monthly COGS totals
- Product-Level COGS Tracker (Excel): Separate sheets for each product/SKU
- COGS Tracker (Google Sheets): Cloud-based with real-time sharing for team collaboration
- Inventory-Linked COGS (Excel): Links COGS to inventory movement and valuation