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# How to Set Up COGS

# How it works – COGS Setup

| COGS stands for cost of goods sold

Under the **COGS** tab, you can input more specific costs.

By default, the app uses the "cost of goods" you set on the product.  
However, if you’ve received a quotation from your agent — with exact prices based on quantity — you can add those values here.

This allows the app to calculate your **exact profit**, including volume-based pricing.

Example quote from agent: ![](https://i.imgur.com/Ygcrt1X.png)

## How to input it in the app
![](https://i.imgur.com/0pnTwaO.png)

## Frequently Asked Questions

### 1. Do I need to use this feature if I already set a product cost in Shopify?

No. If your product always has the same cost, the default Shopify "cost of goods" is enough. This feature is for more detailed, volume-based pricing.

### 2. What happens if I only fill in 1 or 2 quantities?

If you get an order with 3 or more units, our app will use the entered cost brackets

**For example:**
* 1 unit costs $5
* 2 units costs $8

For 3 units the app takes:
* 1 x 2 unit costs = $8
* 1 x 1 unit costs = $5
In total $13.

For 4 units the app takes:
* 2 x 2 unit costs = 2 x $8 = 16 $

## 3. What if my agent's prices include shipping?

Perfect — just enter the total cost (product + shipping) as shown in the quote. That’s exactly what the app needs to calculate accurate profit.