COS
COS (Cost of Sale) is a metric that shows the cost of acquiring one confirmed sale, reflecting how much was spent on advertising for a single transaction.
COS is used to evaluate the profitability of sales and the effectiveness of an advertising strategy.
How COS is used
COS helps understand whether the costs of acquiring customers are justified:
- Profitability analysis
- Campaign comparison
- Expense control
- Funnel optimization
Lower COS at the same sales quality indicates a more efficient campaign.
Where COS is most commonly used
This metric is particularly relevant for sales-focused models:
- CPS offers
- E-commerce
- Physical products
- Subscription services
COS is often analyzed together with average order value and profit.
What is COS in simple terms?
COS is the cost of one sale, including advertising expenses.
Frequently Asked Questions (FAQ):
Is COS the same as CPC?
No. CPC is the cost per click, COS is the cost per sale.
Is a high COS bad?
Yes, if it exceeds the revenue from the sale.
Does COS affect scaling?
Yes, directly.