Pricing

How to Price an Ecommerce Product for Profit

A profitable price has to cover more than product cost.

A profitable price has to cover more than product cost. It must leave enough retained revenue after marketplace fees, fulfillment, shipping, returns and other variable costs.

Start from economics, not markup

A fixed markup can fail when channel costs differ. Model the actual marketplace first, then test the price required for your target contribution margin.

Know your floor

Break-even price is the modeled floor where contribution reaches zero. A commercial selling price should normally sit above that floor by enough to support advertising, overhead and profit objectives.

Scenario test

Test normal price, discount price, higher return rate and higher ad cost before committing inventory or scaling campaigns.

Use the numbers

Educational guidance is most useful when paired with your own SKU economics. Run the same assumptions through the calculator, then compare marketplaces if channel selection is part of the decision.

Open Profit Calculator Compare Marketplaces