How to Price for Profit on Any Marketplace

Guide · 2026-10-17

Most sellers price by adding a percentage to cost. That approach fails because fees are not a fixed percentage of cost, they are a percentage of price plus fixed amounts.

The formula

price = (unit_cost + fixed_fees) / (1 - percentage_fees - target_margin)

Three inputs, and every marketplace differs only in the last two terms.

Reading the fee terms off each platform

PlatformPercentage feesFixed fees
Etsy6.5% + 3% (+15% offsite ads)$0.25 + $0.20 listing
eBay13.25%$0.30
Amazon FBA15% referralFulfillment fee (varies)
Shopify2.9%$0.30 + plan/orders
Poshmark20%$0 (flat $2.95 under $15)
TikTok Shop~6% + 2%$0.30

A worked example across two platforms

Unit cost $8, fixed fees $0.45, target margin 40%.

On Etsy (9.5% percentage fees): price = (8 + 0.45) / (1 - 0.095 - 0.40) = $16.73.

On eBay (13.25%): price = (8 + 0.30) / (1 - 0.1325 - 0.40) = $17.76.

Same product, same target margin, $1.03 difference in the price you must charge. Sellers who use one price across platforms are silently accepting a lower margin on one of them.

Why target margin, not markup

Markup is a percentage of cost. Margin is a percentage of price. A 50% markup on an $8 item gives a $12 price and a 33% margin. Confusing the two is the single most common pricing error, and it gets worse as fees rise.

What the formula deliberately excludes

When to break the formula

Loss leaders, bundle anchors and clearance all justify pricing below the target margin. What is not justified is not knowing the number. Price below target deliberately, not by accident.

Run it: the break-even calculator converts this into a unit target, and the marketplace comparison shows the payout side by side.

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Amazon FBA Fees Explained: Referral, Fulfillment and StorageEtsy Fees ExplainedShopify vs Etsy CostThe Cost of Free ShippingBreak-Even Before LaunchBusy But Not ProfitableMercari vs PoshmarkDepop vs PoshmarkTikTok Shop vs Amazon FBA