Cost of Goods Sold, or COGS, is one of the most important costs to include when calculating product profitability.
Adbrew automatically fetches revenue, Amazon fees, taxes, promotions, and advertising cost from Amazon for Seller Central users. However, Amazon does not usually provide your actual product cost, such as manufacturing cost, purchase cost, packaging cost, freight cost, or any other cost you pay outside Amazon.
To calculate more accurate net profit, you can add COGS as a custom cost for each product in Adbrew.
Before you start:
Profitability is currently available for Seller Central users.
To use this feature, make sure your Seller Central account is connected to Adbrew. Once connected, Adbrew will automatically fetch Amazon revenue and cost data for your products.
Where to configure COGS
You can configure COGS from:
Campaign Management > Products Explorer
In Products Explorer, you will see profitability columns toward the end of the table. One of these columns is Custom Cost.
This is where you can add costs that are not automatically available from Amazon.
Steps to add COGS for a product
Go to Campaign Management > Products Explorer.
Find the product for which you want to configure COGS.
Scroll to the Custom Cost column.
Click the cost value or count in the product row.
A Custom Costs modal will open.
In the Cost Type field, enter a name for the cost.
Example:
COGS
Cost of Goods Sold
Product CostIn the Cost per unit field, enter the cost for one unit of the product.
Example:
If one unit costs you A$8 to purchase or manufacture, enter A$8.Select the Active Period for this cost.
Click Save.
Once saved, Adbrew will automatically use this cost in the product’s profitability calculation.
Choosing the right active period
When adding COGS, you can choose whether the cost applies Always or only for a specific period.
1. Always
Choose Always if the product cost has stayed the same and should apply to all date ranges.
Example: Your product has always cost A$8 per unit. In this case, add COGS as A$8 and keep the active period as Always.
Whenever you view profitability for this product, Adbrew will use A$8 per unit as the product cost.
2. Specific period
Choose a specific period if your product cost changed during a certain date range.
Example: Your product cost was A$8 per unit until June 1. From June 2, your supplier increased the cost to A$9.50 per unit.
In this case, you can add separate COGS entries:
Cost Type: COGS
Cost per unit: A$8
Active Period: Until June 1Cost Type: COGS
Cost per unit: A$9.50
Active Period: From June 2 onward
This helps Adbrew calculate profitability more accurately based on the cost that was active when the units were sold.
How COGS is used in profitability calculations
After you save COGS, Adbrew applies it automatically to the product’s net profit calculation.
For example:
If your COGS is A$8 per unit and the product sold 100 units during the selected date range, Adbrew will include A$800 as custom cost.
This cost is then considered along with Amazon fees, promotions, taxes, and advertising cost to calculate net profit and net profit margin.
Where to see the updated profit
After adding COGS, go back to Products Explorer and check the profitability columns such as:
Gross Profit
Net Profit
Profit Margin
Custom Cost
You can also click the Net Profit value for a product to open the profitability breakdown. This will show how revenue, deductions, Amazon fees, advertising cost, and custom costs contribute to final profit.