The formula
COGS = beginning inventory + purchases − ending inventory
For a reseller who tracks each item, it's simpler: add up what you paid for every item you sold in the period, including any cleaning or repair costs.
Example for a reseller
| Item | Amount |
|---|---|
| Sale price | $48.00 |
| Platform fees | −$9.60 |
| Shipping label | −$7.95 |
| COGS (paid $6 + $1.50 cleaning) | −$7.50 |
| True profit | $22.95 |
Why COGS matters
Sales minus COGS is your gross profit; leave COGS out and every month looks better than it was. Our guide how to calculate your true profit as a reseller walks through the whole calculation, and Flip tracks COGS per item automatically — including items bought in bulk lots. Check margins with the profit margin calculator.
Frequently asked questions
Do shipping labels count as COGS?
Is unsold inventory part of COGS?
How do I find the cost of each item from a bulk lot?
Written by
Finance Specialist & Editor, VaultlyApps
Researched against primary US sources and reviewed by a finance expert on our team. Written for US readers — general education, not financial, tax or legal advice. Editorial policy · Disclaimer
