When setting up your account and selecting the metric for Sales, there are three options to consider: Ordered Revenue, Shipped Revenue, and Shipped COGS. It's important to understand the metric that you choose will be used consistently to calculate TACOS (Total Advertising Cost of Sale) and will represent the "Total Sales" throughout the platform and dashboards. The implications of each metric is explained below:
Ordered Revenue
Ordered Revenue is derived by multiplying the quantity of units ordered by the average retail price per unit. It reflects the anticipated revenue based on confirmed orders, regardless of whether the goods have been shippedShipped Revenue
It is calculated by multiplying the Average Sales Price by the number of units shipped, including any returned items. Shipped Revenue serves as a key indicator of the actual income Amazon receives from your product sales.Shipped COGS
Shipped COGS (Cost of Goods Sold) is determined by multiplying the number of units shipped by the average wholesale price per unit, resulting in the total revenue generated. Brands typically prioritize Shipped COGS as it reflects Amazon's cost of goods sold rather than the vendor's, providing a more accurate representation of the actual revenue generated by the product.