Dropship COGS and expensing dropship costs for goods

[Chazj]

Hello -

I am a sole proprietor and I sell drop-shipped items via the internet. If I have an item that sells for $100, and I paid the drop-shipper $50 for the item and $20 to ship (and the item never came to me but was shipped direct to the customer from the drop-shipper), do I have to include the $50 for the item in COGS? Second part of the question, if I don't include the $50 fee for the item in COGS, is there someplace I can expense that $50? If so, what section? 

Thanks!

[ee-ea]

$50 in COGS is correct.