Price for a Target Margin
Work backwards from the margin you want. Get the exact sale price for each marketplace after its fees, shipping and your cost.
Margin and markup cheat sheet
People mix these up. The same profit is a smaller number as a margin and a bigger one as a markup.
| Margin (profit ÷ price) | Markup (profit ÷ cost) | Price for $10 total cost |
|---|---|---|
| 20% | 25% | $12.50 |
| 30% | 43% | $14.29 |
| 40% | 67% | $16.67 |
| 50% | 100% | $20.00 |
| 60% | 150% | $25.00 |
| 70% | 233% | $33.33 |
Total cost means item cost plus shipping and marketplace fees.
Worked example: Etsy at 50% margin
- 1Fees as a share of price6.5% transaction + 3% payment9.5%
- 2Fixed costs$0.25 payment + $0.20 listing + $4.50 shipping + $6.50 cost$11.45
- 3Solve for price$11.45 ÷ (1 − 0.095 − 0.50)$28.28
- 4Round up to .99Keeps the margin at or above target$28.99
- 5Your profit51.0% margin after rounding$14.79
Frequently asked
What is the difference between margin and markup?
Margin is profit as a share of the sale price. Markup is profit as a share of your cost. A 50% margin is a 100% markup: you sell for twice what the item costs you, including fees and shipping.
What margin should a marketplace seller aim for?
Many sellers aim for a 25% to 40% net margin after marketplace fees and shipping, and higher for handmade or slow-moving items. Below 15% there is little room for returns, ads and fee increases.
Why is the price different on each marketplace?
Fees differ. Etsy charges a share of the price plus fixed amounts, eBay charges a category rate plus a per-order fee, and Amazon FBA adds a fulfillment fee by size and weight instead of your own shipping cost.
Does rounding to .99 change my margin?
Rounding always goes up, so the margin after rounding is at or above your target. The result shows the exact price and the margin you get at the rounded price.