Classify free shipping under customer acquisition costs (CAC) instead of costs of goods sold (COGS) to prevent operational misalignment. By recognizing the marketing intent behind free shipping, businesses can accurately evaluate operational efficiency and cost-effectiveness. This clarity prevents misaligned incentives that can cause friction between marketing and operations. In practice, separating these costs means marketing teams take ownership of the costs associated with customer acquisition strategies, ensuring logistics retains focus on fulfillment performance and efficiency.