What is Cost of sale (COS) ?
Why is Cost of Sale (COS) important for sellers ?
How does Cost of Sale (COS) work in practice ?
Pro tip for Cost of Sale (COS)
To effectively utilize Cost of Sale (COS), Amazon sellers should regularly conduct a COS analysis to identify areas for cost reduction and efficiency improvements. Start by tracking all direct costs associated with your products, including materials, labor, shipping, and Amazon fees. Use tools within Amazon Seller Central to generate reports that provide insights into your COS trends over time. By comparing your COS against your sales data, you can pinpoint which products are underperforming and may require price adjustments or cost management strategies. For example, if you notice that a specific product has a high COS relative to its sales, consider negotiating with suppliers for better rates or optimizing your fulfillment process to reduce shipping costs. This proactive approach not only enhances your profit margins but also positions your business for sustainable growth on the Amazon platform.