# Price for a target margin

The lowest sale price that reaches a target margin on each marketplace (United States), after marketplace fees, your shipping and item cost. Prices are rounded up to .99.

Example: tea towels, item cost $6.50, shipping $4.50, 9 × 6 × 1 in, 8 oz, target margin 50%.

| Marketplace | Exact price | Rounded | Margin after rounding | Profit |
| --- | --- | --- | --- | --- |
| Etsy | $28.28 | $28.99 | 51.0% | $14.79 |
| eBay | $31.33 | $31.99 | 50.8% | $16.24 |
| Amazon FBM | $31.42 | $31.99 | 50.6% | $16.19 |
| Amazon FBA | $33.75 | $33.99 | 50.3% | $17.08 |

## Margin and markup

- Margin = profit ÷ sale price. Markup = profit ÷ total cost. Margin = markup ÷ (1 + markup).
- 20% margin = 25% markup; price for $10 total cost: $12.50
- 30% margin = 43% markup; price for $10 total cost: $14.29
- 40% margin = 67% markup; price for $10 total cost: $16.67
- 50% margin = 100% markup; price for $10 total cost: $20.00
- 60% margin = 150% markup; price for $10 total cost: $25.00
- 70% margin = 233% markup; price for $10 total cost: $33.33

## FAQ

### 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.