Set up and test reporting with conversions with cart data

Step 2: Provide cost of goods sold (COGS) feed attribute to report on profit margins

To unlock profit reporting, you need to provide the cost of goods sold (cogs) cost_of_goods_sold feed attribute in your Merchant Center product feed.

Cost of goods sold (cogs) cost_of_goods_sold represents the cost of the product that you're selling. Google Ads uses this attribute to compute the profit margin on each product (profit = revenue - COGS). If you don’t have precise COGS data for your products, but still want to see profit reporting, you can use approximated COGS values. For example, you can estimate your COGS as 80% percent of the product price. Learn more about Cost of goods (cogs) [cost_of_goods_sold].

You may provide COGS data in three ways:

  • Through your product feed
  • Through the Content API
  • By creating a supplemental feed and providing estimates or values for individual products

If you choose not to provide the cost_of_goods_sold feed attribute, you won’t be able to see values reported for some metrics like COGS and gross profit.

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