Your Shopify cost of goods sold (COGS) can change depending on where an order is sold or fulfilled. Suppliers, manufacturing, shipping, duties, and local fulfillment can all make the same product cost more in one market than in another. Bloom lets you set different product costs for different countries, so your profit calculations use the COGS that applies to each market. You can also set costs by product variant, date range, and quantity.

Key takeaways

• Bloom lets you set a different product cost for each country, so profit reflects the actual COGS of each market.

• You can configure costs for individual products and variants, as fixed costs or quantity-based costs.

• A date range lets you account for changes in product costs over time.

• Bloom offers three quantity methods: Absolute, Incremental, and Flat.

• The costs you enter in Bloom do not modify the product costs stored in Shopify.

Why can one cost of goods sold in Shopify misstate profit?

Using the same product cost for every country can result in inaccurate profit calculations. You may sell the same product in several countries while your cost differs in each one. Here is an illustrative example:

If you use a single $10 COGS for all countries, actual profit may overstate the from orders in the UK and Germany. With country-specific costs, Bloom can use the appropriate COGS when it calculates profit.

How do you add cost of goods sold by country in Bloom?

Bloom lets you configure product costs on four levels: country, date range, product variant, and quantity. You can combine them to match how your costs actually work.

Set a different cost for each country

Set a different COGS for each country where you sell your products. In the illustrative example above, that means $10 for the United States, $13 for the United Kingdom, and $14 for Germany.

Set a date range for each cost

Set different COGS for different periods. This illustrative example shows both country and date range at work:

This lets Bloom account for both country-specific costs and changes in costs over time.

Set costs for individual products and variants

You can configure costs for individual products and variants. This gives you more control over your COGS and lets you keep different costs for different variants.

Set costs based on quantity

You can also configure costs based on the quantity ordered. Bloom provides three quantity calculation methods: Absolute, Incremental, and Flat. The sections below explain each one.

What is the difference between fixed cost and quantity-based cost?

Fixed cost: one cost per unit

With a fixed cost, you specify a single cost per unit for a product within a particular country and date range. Here is an illustrative example:

• Product: T-Shirt

• Country: United States

• Date range: January 1 to March 31

• Cost: $10 per unit

If an order contains 3 units, the COGS is 3 x $10 = $30. If you add a second range for April to June at $12 per unit, an order placed in February uses $10 per unit, and an order placed in May uses $12 per unit.

Quantity-based cost: pricing that depends on how many units are ordered

Some suppliers offer different costs depending on the quantity purchased. For example:

Bloom lets you choose how these quantity ranges are applied.

How do Absolute, Incremental, and Flat quantity methods differ?

The three examples below use the same tiers (Qty 1 to 2 at $8, Qty 3 to 5 at $4) and an order of 3 units.

Absolute: the final matching rate applies to all units

With Absolute, the rate from the final matching quantity range applies to all units. For 3 units, that is 3 x $4, so the total COGS is $12. This is useful when the supplier gives you a single per-unit price based on the total quantity.

Incremental: the cost builds across quantity ranges

With Incremental, the cost is calculated progressively across the quantity ranges. The first 2 units cost 2 x $8 = $16, and the third unit costs 1 x $4 = $4. The total COGS is $20. This is useful when each quantity tier represents an additional pricing level.

Flat: one charge for the matched quantity tier

With Flat, a single charge applies to the matched quantity tier, regardless of how many units are ordered within that tier. For 3 units, the total COGS is $4. It is not $4 x 3. This is useful when your supplier charges a fixed amount for the entire quantity tier.

Absolute vs Incremental vs Flat at a glance

The appropriate method depends on how your supplier structures its pricing.

Which cost option should you use?

• Fixed Cost: Use it when your product has a consistent per-unit cost in a specific country, or when your supplier cost changes over different date ranges.

• Absolute: Use it when the final quantity tier determines the per-unit cost for all units.

• Incremental: Use it when different portions of the quantity have different costs.

• Flat: Use it when the supplier charges one fixed amount for the entire quantity tier.

How does country-specific COGS improve your profit reporting?

When product costs vary across countries, one global COGS can make profit reporting inaccurate. Country-specific product costs let you reflect the actual cost of each market, along with date ranges, product variants, and quantity-based pricing.

This helps you:

• Calculate profit more accurately for each market.

• Analyze profitability by country.

• Avoid overstating or understating profit margins.

• Maintain different costs for individual product variants.

• Account for cost changes over different date ranges.

• Handle quantity-based supplier pricing.

The result is a more accurate view of product profitability, order profitability, profit by country, gross profit, profit margins, and overall business profitability.

Does Bloom change the product costs stored in Shopify?

No. The product costs you enter in Bloom are used for Bloom's profit calculations. They do not modify the product costs stored in Shopify. This lets you keep country-specific COGS and historical cost structures in Bloom while your Shopify cost of goods sold data stays unchanged.

Frequently asked questions

How do I add cost of goods sold for my Shopify products in Bloom?

In Bloom, you set product costs by country, date range, product and variant, and quantity. For each product you choose a fixed cost or a quantity-based cost, and Bloom uses the matching cost in its profit calculations. The costs you enter do not change the product costs stored in Shopify.

Can I set a different cost of goods sold for each country?

Yes. Bloom allows you to set a different product cost for each country where you sell. For example, you could set $10 for the United States, $13 for the United Kingdom, and $14 for Germany. These figures are illustrative.

Can I change my cost of goods sold over time?

Yes. You can specify a date range for each cost. In an illustrative setup with $10 per unit for January to March and $12 per unit for April to June, an order placed in February uses $10 per unit and an order placed in May uses $12 per unit.

What is the difference between Absolute, Incremental, and Flat?

They are three ways Bloom can apply quantity-based costs. Using Qty 1 to 2 at $8 and Qty 3 to 5 at $4, an order of 3 units costs $12 with Absolute (3 x $4), $20 with Incremental ((2 x $8) + (1 x $4)), and $4 with Flat. The right method depends on how your supplier structures its pricing.

Can I set different costs for product variants?

Yes. Costs can be configured for individual products and variants, which gives you more control over your COGS.

Does Bloom change the product costs stored in Shopify?

No. The product costs you enter in Bloom are used for Bloom's profit calculations. They do not modify the product costs stored in Shopify.

Set country-specific product costs in Bloom to see profit that reflects each market.