Does reducing my e-commerce business inventory affect my COGS?
Asked 3 years ago
This morning I received my income statement, and when I checked for the COGS, I noticed that the figure was higher than last month. My stock wasn't moving the month before, and my COGS wasn't as high as this. I decreased the amount of stock I bought due to it not moving and re-evaluated my niche. Seeing my COGS as high as it was this month was a total shock. It doesn't make much sense to me.
Fredrick Fox
Sunday, August 07, 2022
Yes, reducing the business's inventory will affect the COGS which will, in turn, affect the gross profit. The formula for COGS is opening inventory + purchases - closing inventory. A reduction of inventory can reduce the closing inventory which increases the COGS. Or it can reduce the opening inventory which also increases the COGS.
Please follow our Community Guidelines
Related Articles

How to Boost Sales With Upsell and Cross-Sell for WooCommerce
Brody Hall
December 28, 2021

Advertise on Facebook Like an E-Commerce Pro With These 3 Strategies
Brody Hall
July 27, 2022

Why BeProfit Is the Best OrderMetrics Alternative
BeProfit Staff
June 29, 2022
Related Posts
Marcel Deer
3 Insights on How to Reduce Your COGS
Can't find what you're looking for?