How to use it
- Enter the item price and any shipping you charge the buyer.
- Enter the percentage and fixed fees from your marketplace and payment provider.
- Enter what the item cost you and what you pay to ship it.
- Read the profit, total fees, payout and break-even price.
How it works
- Buyer pays = price + shipping charged.
- Fees = buyer pays × (marketplace % + payment %) + both fixed fees.
- Payout = buyer pays − fees. Profit = payout − item cost − your shipping cost.
- Break-even price = (item cost + your shipping + fixed fees) ÷ (1 − fee rates) − shipping charged.
Worked example
A 100 item with 10 shipping charged, a 10% marketplace fee, a 3% payment fee and 0.30 fixed for each: the buyer pays 110, fees are 110 × 13% + 0.60 = 14.90, payout is 95.10. With a cost of 40 and 8 shipping, profit is 47.10, a 42.82% margin. The break-even price is 45.86.
Tips
- Recheck fee rates from time to time, since they can change.
- Include packaging in your item cost if it matters.
- Returns and refunds are not included.