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Articles

Cost of Good Sold structure

  • unit economics,
  • metrics,
  • cards

This metric can be composite and describe each type of cost separately. For example, in commerce, each transaction may include the cost of accepting payment from the customer (acquiring as a % of AOV), the cost of purchasing goods, packaging and delivery. And each of these types of costs can be broken down separately. Some costs may be dependent on the average check and expressed as a percentage, some will have a fixed value. The total COGS value is the sum of all individual COGS

This means that when optimizing the unit economics model with the help of Goldratt's theory of constraints, it is possible to find problem places with the accuracy of each individual COGS and optimize the process related to it separately from others.

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