Seller profit guide
The sale price is not the profit.
A $200 order can feel successful until platform fees, payment charges, shipping, packaging, and production costs arrive.
Start with total seller revenue
Add the item price and any shipping amount the buyer pays. Keep sales tax separate when the marketplace collects it, but include it in a fee base when the marketplace says its fee applies to tax.
List every variable fee
Record transaction, payment, advertising, international, and category-specific percentages. Confirm which parts of the order each percentage uses.
Add fixed and operational costs
Include listing and per-order charges, materials, packaging, postage, insurance, labels, and the cost of producing the work. Do not hide shipping inside a vague “free shipping” assumption.
Calculate net profit and margin
Net profit equals revenue minus fees and costs. Margin equals net profit divided by revenue. Compare both because a positive dollar profit can still represent a fragile margin.
Find break-even before choosing a price
Break-even is the price where profit reaches zero. A recommended minimum should go higher and include the margin the practice needs.