Skip to main content
Profit For Sellers

Pricing

A selling price has to cover more than product cost. Fulfillment, payment and platform fees, acquisition cost, refund assumptions, and the profit you intend to keep all change the price you need. These tools help you set that price from unit economics. They do not predict what customers will pay.

Markup vs margin

Markup is profit relative to cost. Margin is profit relative to selling price. A 50% markup is not a 50% margin. Pricing conversations that mix the two produce the wrong target. The Product Pricing Calculator works from a target expected profit margin on selling price—not from a markup shortcut on COGS alone.

Why pricing from COGS alone is dangerous

Cost of goods is only one variable cost. Ignoring fulfillment, percentage or fixed payment and platform fees, advertising acquisition cost, and expected refund or return losses understates the price needed to break even—and understates the price needed for a target margin even more. A price that looks fine on product cost alone can still lose money after fees and ads.

What to include

  • Product cost and fulfillment or shipping you bear.
  • Payment processing and platform fees (percentage and fixed).
  • Expected advertising cost per order when paid acquisition is part of the plan.
  • Refund or return assumptions where they materially change expected economics.
  • Desired profit as a target margin and, optionally, a dollar profit target.

Once those are set, you can solve for break-even selling price, a target-profit or target-margin price, and discount headroom from a proposed price—how far you can discount before you fall below break-even or your target under the same assumptions.

Pricing workflow

  1. Establish all variable costs (product, fulfillment, and related line items).
  2. Include percentage and fixed fees that apply to the order.
  3. Incorporate expected refund losses where they are relevant.
  4. Determine break-even selling price under those assumptions.
  5. Calculate a target-profit or target-margin selling price.
  6. Evaluate discount headroom from any proposed list or promo price.

Tools and guides

The dedicated solver is the Product Pricing Calculator. For a longer walkthrough of margin, markup, and break-even price, read How to Price a Product for Profit.

If you already have a price and want expected profit at that price, use the E-commerce Profit Calculator. If paid acquisition is the binding constraint, check affordable CPA and break-even ROAS with the Break-Even ROAS Calculator or start from the advertising hub. Browse all tools on the calculators hub. For a modeled price ladder on a fixed cost structure, see the product price vs profit analysis.