Calculating ecommerce inventory and COGS using product cost catalogs

Accurately calculating the value of your ecommerce inventory and COGS is important for multiple reasons. At the end of the day, it is a key in ecommerce accounting that will allow you to see true gross profit margins and how your products are performing.
In this video, we talk about using product cost catalogs to help you with tracking the value of you inventory and COGS. Setting this up correctly will save you tons of time later!
For more in-depth summary of ecommerce inventory and COGS, read our blog, which is one of the most-read articles on Google on this topic: ledgergurus.co...
For help with your ecommerce accounting, reach out to us here: ledgergurus.co...
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• Calculating ecommerce ...

[@LedgerGurus]

For help with your ecommerce accounting, contact us here: ledgergurus.com/ecommerce-accountant/ecommerce-accounting-contact/

[@greenwall1799]

I'm currently reviewing my accounting knowledge and this video really helped me a lot. You explained it really well. I think you should teach accounting classes in Universities. The presentation that shows the topics to be discussed, the topics discussed and the topic currently being discussed is good guide on the discussion.

[@mawishfood9524]

These videos are fantastic - As my skis are made up of a lot of ingredients I am struggling with working out COGS and inventory.. do you have a link to the manufacturing video anywhere?

[@nelfamanlimos9747]

Hi, if you need a virtual assistant to help with your inventory and cogs of your product from packaging, ingredients, freight, etc. Maybe I can help. I am an experienced Restaurant Manager who manage the entire store operations for over 10 years already. talk soon!

[@waingirl]

I will be selling on ebay, all kinds of things will be in my inventory. Clothes, vintage dishes, vintage anything really. All from the thrift stores or garage sales etc. So, all my inventory will be drastically different at any given time. Not just a number of SKUs of certain quantities. I don't want to start selling until I have the correct method of accounting in order. I was a self employed nail technician for 20 years, so I understand bookkeeping and taxes for that, but this is different. Should I be using the FIFO or Averaged Method for COGS, and is that considered Accrual Accounting? Thank you.

[@bobdunaway3891]

Thanks for the video, Britney! Are you guys using Seller.Tools at all? Been hearing about it around a few communities I'm in. Could you check it out and give us a review or walkthrough sometime soon?

[@deaneprox]

Great video, thank you! If I sold across three different marketplaces, and the same product has a different SKU ID across all three marketplaces, what is best way to account for these? Would you enter the three different SKU into the single 'Sales Channel SKU' column, or would you create three separate columns please?

[@LedgerGurus]

Have a row in your Product Cost Catalog spreadsheet where you're indicating what these SKUs are called in all the areas - Internally, Marketplace #1, Marketplace #2, Marketplace #3.

[@lkim420]

Question- when you put a value on each SKU, is it just the cost of the product itself or do you include packaging costs, freight shipping costs and other costs related to that SKU?

[@LedgerGurus]

You can choose to cost based on the product cost or the landed cost (includes all the other things you mentioned). Landed cost is more accurate but also harder to execute on.

[@kassandrahill4124]

Hello great video can this be applied to a drop shipping business?

[@LedgerGurus]

With drop shipping, since you never actually have ownership of the inventory, you don't need to show keep track of inventory value on your balance sheet.

[@deaneprox]

Do you have a copy of the multi page spreadsheet, or just the page as seen at 7.00 minutes you could share please? If not can you example the spreadsheet formula how to arrive at the new 'AVG Cost' where price of product changes from one order to the next?

[@LedgerGurus]

It's not just one formula on the sheet. It's multiple cells that work together. The entire spreadsheet helps to calculate that number. The details are a bit beyond the scope of KZbin videos. We're planning to launch a course in the next year or so that will go much deeper into things like this. Stay tuned!