Marketplace Profit Calculator
Calculate net unit profit, profit margins, and break-even selling prices across Amazon, Etsy, eBay, and Walmart marketplaces after COGS, fees, and ad costs.
Marketplace Net Profit Formula
Net Profit = Selling Price - [COGS + (Price × Fee %) + Shipping + Packaging + Ad Spend]; Break-Even = Direct Costs / (1 - Fee %)- Direct Unit Costs: Manufacturing COGS, merchant shipping, packaging materials, and unit advertising CPA.
- Marketplace Commission: Platform referral fee applied to the selling price.
- Net Profit Margin: Net dollar profit divided by the final selling price.
- Break-Even Price: Minimum price required to cover all manufacturing, shipping, and marketplace fees with zero profit.
Step-by-Step Worked Example
Calculation Steps:
How to Use This Calculator
Assumptions & Limitations
- Assumes seller absorbs shipping costs as free shipping or that shipping is included in price.
- Ad spend per unit assumes blended customer acquisition cost (CAC).
Frequently Asked Questions
What is a good profit margin on Amazon and third-party marketplaces?
A healthy net profit margin on online marketplaces is 15% to 25% after deducting product costs, 15% marketplace commissions, FBA fees, and PPC advertising spend.
How do I calculate my break-even selling price?
Divide your total direct costs (COGS + shipping + packaging + ads) by (1 minus the marketplace fee percentage). For example, $20 in costs with a 15% fee requires $20 / 0.85 = $23.53.
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