Benchmarks
Average ecommerce conversion rate is often ~2–3% (varies widely by industry and traffic mix).
Source: IRP Commerce — Ecommerce Market Data (Jan 2026)
Average ecommerce cart abandonment rate is 70.19%.
Source: Baymard Institute — Cart Abandonment Rate Statistics (2024)
Key takeaways
- COGS (Cost of Goods Sold): Definition for Ecommerce — focus on one metric or lever at a time; validate with data before scaling spend.
- Pair reading with the Ecommerce Simulator on Growthegy to practice unit economics and decisions before you spend.
- Bookmark growthegy.com/ecommerce-simulator/ for hands-on scenarios; use the blog for deeper guides.
COGS (cost of goods sold) is the direct cost of producing or purchasing the products you sell: materials, manufacturing, direct labor, and often shipping or fulfillment per unit. Revenue − COGS = gross profit. Gross margin % = (Revenue − COGS) ÷ Revenue.
What to include
Include direct product costs: what you pay suppliers, manufacturing, direct labor, and (depending on your accounting) inbound shipping and fulfillment per unit. Exclude indirect costs like marketing, rent, and salaries.
Why it matters
COGS drives gross margin and product profitability. Practice margin trade-offs in our Ecommerce Simulator. Back to Ecommerce Growth Stages glossary.