Seller Profit Checklist
Run through this before you set or change a price. Tick each box once it's done.
1. Pricing
- Write down the sale price and any shipping you charge the buyer separately.
- Compare your price with 3–5 similar listings, not just the cheapest one.
- Decide whether prices include or exclude sales tax / VAT where you sell.
2. Platform & payment fees
- List every fee: transaction %, payment processing %, fixed per-order fee, listing or subscription fees.
- Check whether fees apply to shipping charged as well as the item price.
- Add currency-conversion or payout fees if you're paid in another currency.
- Re-check fee pages at least every quarter — rates change.
3. Break-even
- Add product/service cost, your shipping cost and overhead per order.
- Find the price where net profit is exactly zero after all fees and reserves.
- Never run a discount that takes the price below break-even.
4. Target margin
- Choose a target net margin (e.g. 20–30%) before setting prices.
- Calculate the price needed to hit that margin after all percentage fees.
- If the target price is above what the market pays, cut costs or change the offer.
5. Returns reserve
- Estimate your return/refund rate from past orders (or a cautious guess).
- Set aside that % of revenue on every sale as a reserve.
- Remember many platforms keep their fees even when you refund.
6. Ad cost
- Express ad spend as a % of revenue (ad spend ÷ ad-driven sales).
- Include offsite/marketplace ad fees charged on attributed orders.
- Pause ads whose cost % pushes net profit below zero.
7. Monthly profit
- Multiply net profit per order by realistic monthly orders.
- Subtract fixed monthly costs not already in overhead (software, subscriptions).
- Compare the result with your income goal and adjust price, costs or volume.
Put your numbers in the free profit calculator to check break-even, target-margin price and monthly profit instantly.