Definition
For advertising measurement, COGS is the variable product cost directly tied to items sold from ad-attributed orders. POAS subtracts this from revenue (with fees and shipping) before dividing by ad spend.
Common COGS sources
Pick one system of record and sync to Profit Bid.
- Store cost field (WooCommerce, Shopify, BigCommerce, etc.).
- ERP or PIM export mapped to SKU.
- Manual CSV for long-tail variants.
- Weighted average for kits and bundles (document the rule).
Frequently asked questions
Common questions about this topic — tap to read answers.
VAT in COGS?
POAS typically uses ex-VAT product cost and ex-VAT revenue for EU merchants — align with your finance team once.
Bundles?
Split COGS by component SKU or use pre-calculated bundle cost. Consistency matters more than perfection.
