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In: Finance

I need a general statistic on what it the typical Cost of goods sold for online...

I need a general statistic on what it the typical Cost of goods sold for online retail (example-rent the runway, Le Tote etc.) I can't find a stat. to help me estimate a number thank you.

Expert Solution

One site i have found which shows the trend of gross margins in the industry as 42.08% in Q2-2018. (gross margin is same as cogs % of sales)

https://csimarket.com/Industry/industry_Profitability_Ratios.php?ind=1302

NYU Stern has estimated cogs margins to be 43.76% with 61 online retailer firms in sample.

http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/margin.html

Otherwise, what you can do is take a sample of online players who are listed and have reported their cost of goods sold in their profit and loss statement in their annual reports (10-k filings)

Some listed companies and their reported numbers -

Examples of cogs numbers -

1. Overstock - 80.48% of sales in 2017

page 58, http://www.annualreports.com/HostedData/AnnualReports/PDF/NASDAQ_OSTK_2017.pdf

2. Vipshop - 76% of sales in 2017

page 3, http://media.corporate-ir.net/media_files/IROL/25/250900/Vipshop-2017-20-F-As-filed.pdf

3. LightInTheBox - 66.98% of sales in 2017

page 1, http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NjkxMDI3fENoaWxkSUQ9NDAxNzgwfFR5cGU9MQ==&t=1

4. Land's End - 57.5% of sales in 2017

page 38, http://investors.landsend.com/static-files/93cfb44b-3070-4099-bac4-29f5a8e544cd

5. Amazon - 57.9% of sales in 2018

https://csimarket.com/stocks/income.php?code=AMZN

jeff jeffy answered 2 years ago

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