How do I price a product after marketplace fees?

Minimum price = (Product cost + Packaging + Shipping + Allocated fixed costs) ÷ (1 − Fee percentage − Target margin). For example, $10 cost with 10% fees and 40% target margin = $10 ÷ 0.50 = $20.

What fees should I include when pricing for marketplaces?

Include every percentage fee the marketplace takes on the sale: transaction fee, payment processing fee, advertising fee (if Offsite Ads or PPC), and any category-specific commission. Shipping revenue from the buyer is part of revenue but not a fee.

How does pricing differ between Etsy, Amazon, and Shopify?

Etsy: 6.5% transaction + 3% payment processing ($0.25 fixed) plus Offsite Ads if applicable. Amazon: 6-15% referral fee by category plus FBA fulfillment if used. Shopify: 2.9% + $0.30 with Shopify Payments. Each requires a different denominator.

Should I round up my minimum price?

Yes. Add a 5-10% buffer for unexpected costs (returns, packaging waste, shipping surcharges). A price that exactly matches your minimum leaves no room for error.

How do I handle free shipping in my pricing?

If you offer free shipping, you are absorbing the shipping cost. Add your average shipping cost to the variable cost line, and include any shipping revenue the buyer paid in the revenue line. The platform fees still apply to the full revenue.

What if my target margin seems unreachable?

Lower it. Or raise the price, reduce product cost, or change marketplaces. There is no honest way to sell below your break-even floor; you will lose money on every order.

Seller economics / pricing

How to price a product after marketplace fees

The minimum viable price is the one that survives fees and costs, not the one that only looks competitive.

Updated 2026-09-10 · Illustrative education, not accounting or tax advice.

Separate fixed and percentage costs

Fixed costs do not scale with price; percentage fees do. Keeping them in separate buckets prevents a percentage fee from being applied twice and makes the result easier to compare with a statement.

The pricing formula

Required revenue = fixed dollar costs ÷ (1 − percentage fee rate − target margin)

The displayed unit price should be rounded upward to the next cent so ordinary rounding does not push the result below the requested margin.

Stress-test before publishing

Use the product pricing calculator with a higher shipping cost, a return allowance, and a realistic ad budget. If the resulting price is outside the market range, adjust the offer or cost structure instead of hiding the margin target.

Boundaries

This is not a demand forecast or competitor-price scraper.
MarginTally does not prescribe the target margin you should choose.
Platform-specific rates must be checked against the current fee policy.