As we all know, Shopify thinks the world actually revolves around them. In some ways it does, but it can be frustrating when Shopify doesn’t consider the fact that Store owners may have a store and inventory outside of the Shopify world. Let’s talk about Inventory SKU. Best I can tell there is no way to have a product in Shopify with different cost. For example, If I buy 10 of an item, it may cost me $10 per item. If I buy 20 it may cost me $20 per item. There is no way to capture this in Shopify without creating unique items SKU’s. OK, not the end of the world. If Shopify provided me a Master ID field that could be the same for both items in Shopify. Of course, this would also need to be available for Inventory import/export and PO ordering. Also this Master ID could be used for my inventory on other platforms like Ebay, Amazon etc. Oh, but that would be the world revolves around the customer. I know, asking too much. If anyone has a solution I would appreciate and help. And no, taking an average price is not a solution. Funny thing - there is this entity called the IRS that requires I report actual COGS (cash basis). Cheers
Topic summary
Main issue: Shopify allows only one cost per SKU, making it hard to track changing supplier costs and accurately report cost of goods sold (COGS).
Details: The OP describes buying the same item at different costs over time (e.g., $3 then $3.20). Shopify forces creating a new product/SKU to reflect the new cost, leading to duplicate storefront listings and SKU bloat.
Compliance concern: The OP states the IRS requires reporting actual COGS on a cash basis; using an average cost is not acceptable to them.
Proposed solution: Add a Master Product ID separate from SKU. This Master ID would link identical items with different costs, be included in inventory import/export and purchase orders, and help align inventory across channels like eBay/Amazon. SKUs could then represent cost-change variants under one master ID.
Discussion status: Another participant asked for clarification; the OP provided a detailed scenario. No workaround or official solution was provided. The request remains open with no resolution.
hey mate!
i would love to give you a hand as i imagine if you’re hitting this issue, I am sure many more merchants are too!
Can you list out the problem in a bit more detail just so I can think of a solution that might help!
Thanks!
Issue - Different cost of merchandise and how to easily and correctly report COGS to the IRS after the sale (so many ways I can frame this issue). In Shopify I can add my inventory and add my cost for the item. Let’s say I bought a pencil for $3 and I am selling it for $10. Easy I can simply add the pencil into my inventory at $3 my cost, and selling for $10 also I add a SKU number P10001. Sales are going great and now I need to order more. At the end of the year I’m required to report my sales $10, and I am also required to report the COGS $3. Easy, and Shopify has a report that shows us this (thank you Shopify). But now let’s say my cost has increased for the item from $3 to $3.20 each. I can increase my quantity of the pen, but Shopify only allows me to enter one price for my Pen SKU P10001. So I’m forced to create a new product with a new SKU with a new price for the additional pens I want to add to my inventory. This is why if you do some searching lot’s of merchants complain about all of the SKU’s they are forced to create and manage. Another issue with this solution is for my potential customer. They go out to my store and now see the exact item listed twice but for two different amounts. Not professional and certainly confusing to the customer. Of course the solution is so simple and literally would take a good programmer at Shopify to fix an hour to code is adding a Master ID field seperate from the SKU field. That way I can have my one Master ID for this item and the Shopify SKU becomes a price change varient. This wouldn’t solve the double listing on my store front but it would make it easier for merchants to manage their real inventory items and not all of the bloated number of SKU’s that are a result of this issue.