Question 1

How do I work out profit on a marketplace order?

Accepted Answer

Take the selling price, then subtract the item cost, the commission and payment fees, the fixed fee, shipping, packing and the ad spend per order. Then subtract the cost of returns, spread across every order.

Question 2

How are returns counted?

Accepted Answer

A returned order refunds the price and the percentage fees, and the item goes back on the shelf. You still paid the shipping, packing and ads, plus the cost of the return itself. If 8% of orders come back at 6 each, that is 0.48 off every order.

Question 3

What is the break-even price?

Accepted Answer

The selling price at which an order makes exactly zero. Below it, every sale loses money once fees, shipping, ads and returns are paid. If no price breaks even, the percentage fees add up to 100% or more.

Question 4

Should I include sales tax or VAT?

Accepted Answer

No. Enter prices without the tax you collect and pay on to the government, so the profit is what you keep.

Marketplace profit calculator, after everything.

Marketplace profit, explained.

Check every payout, not one order.