Skip to content
Selling Fee Tools

How to Price Products After Fees

By Selling Fee Tools team ·

Most selling fees are a percentage of the price, plus sometimes a fixed fee per order. That means you can’t just add your fees to your cost: raise the price and the fee rises with it. The way round it is to work backwards from the profit you want.

The formula

For a fee of p% of the price plus a fixed fee per order:

Price = (cost + fixed fee + profit you want) ÷ (1 − p%)

where cost is everything you pay per order: product, packaging and the shipping you pay. Several fees stacked together, such as a transaction fee and a payment fee, add up their percentages.

The same product on five channels

A product costing $20, with $5 of shipping you pay, sold with free shipping. What price leaves $10 profit on each? Worked out with each platform’s fee rules for US sellers:

ChannelPrice neededFees at that price
Amazon (FBM, Professional, 15%)$41.18$6.18
eBay (most categories, no Store)$40.97$5.97
Etsy (with the $0.20 listing fee)$39.18$4.18
TikTok Shop (6%)$37.23$2.23
Your own store with Stripe (2.9% + 30¢)$36.35$1.35

Plan fees aren’t included: Amazon Professional costs $39.99 a month, and your own store has its own platform costs and needs its own traffic.

Then add advertising

Ads are a cost per order too. At $41.18 on Amazon, the fees are $6.18 and the product and shipping $25.00, which leaves $10.00 for advertising and profit: the order’s contribution margin. Spend more than $10.00 in ads to win the order and it loses money, so $10.00 is your max CPA, and $41.18 ÷ $10.00 = 4.12 is the break-even ROAS at this price.

If your ads need, say, $6 per order to make a sale, add it to the cost in the formula and the price rises to keep the same profit. The break-even ROAS calculator works this out for your own numbers, along with the target ROAS for a chosen profit.

Watch the extras

  • Sales tax raises eBay’s and Etsy’s fees in the US, because both charge part of their fee on the tax the buyer pays.
  • International buyers add fees: 1.65% on eBay, and 1.5% on Stripe for cards issued abroad.
  • Promoted listings and offsite ads are a percentage of the sale on eBay and Etsy; Etsy’s Offsite Ads take 15% of an order that comes from one, or 12% for larger shops.
  • Payouts: Stripe’s standard payouts are free; Instant Payouts cost 1.5%.

Tools

Every fee calculator on this site has a “price needed for a profit of” box that does the working backwards for you: