Marketplaces
Pricing for marketplaces: working out your real margin
How to calculate the true profit on a marketplace sale after commission, shipping, fees and returns.
Key takeaways
- Include every fee: commission, closing, shipping, payment and GST
- Add the cost of expected returns
- Different marketplaces may need different prices or pack sizes
A product that sells well can still lose money if the price does not cover every fee. Many new sellers only discover this after months of busy sales.
Where a ₹999 sale goes (example)Animated
Product cost420
Commission150
Shipping90
Other fees40
Returns allowance60
Profit239
List every cost
- Product cost including packaging
- Marketplace commission, which varies by category
- Fixed or closing fees per order
- Shipping, which depends on weight, size and distance
- Payment collection fees where applicable
- GST on fees and on your sale
- Advertising
- Expected returns and damaged goods
Use the marketplace calculators
Most marketplaces offer fee calculators in the seller dashboard. Fee structures change, so check them regularly rather than relying on old numbers.
Pricing sheet columnsAnimated
- Cost price
- Commission
- Fixed fees
- Shipping
- GST
- Returns allowance
- Ad cost
- Profit
Adjust packs and prices
If a low-priced item cannot carry the fees, sell it in a pack of two or three. Bundles often improve margin and perceived value.
Single vs bundleAnimated
Single item
vs- ₹299 price
- High fee share
- Thin margin
Pack of three
- ₹799 price
- Fees spread out
- Healthier margin
Review monthly
Fees, shipping rates and competitor prices change. A monthly pricing review keeps profits healthy.
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