1. Start with the true product cost
Product cost is more than the invoice price. Include inbound freight, import duty, prep services, inspection, damaged units, and any cost needed to make the item sellable. If you buy mixed lots, divide the total cost across the items you can realistically sell rather than across every unit received.
A clean cost number prevents the most common pricing mistake: thinking a product is profitable because the purchase price was low while ignoring the expense required to get it ready for the buyer.
2. Enter current marketplace fees
Do not use an old fee percentage from memory. Marketplaces can change rates, and fees can vary by category, shipping amount, seller subscription, location, or promotion. Copy the current fee from your seller dashboard, then run it through the marketplace fee calculator.
3. Price shipping honestly
Shipping should include the label, packaging, and packing time. If you offer free shipping, add the fulfillment cost into the item price. If you charge shipping separately, check that the amount covers the real average cost instead of only the cheapest possible label.
4. Add a return or refund reserve
Returns are not evenly distributed. Clothing, shoes, fragile goods, electronics, seasonal products, and high-expectation handmade items may need a bigger reserve. Even a small reserve can make the profit estimate more realistic.