Use this calculator to estimate your potential net profit when selling products on an online marketplace. Account for product costs, marketplace commissions, shipping, and payment processing fees to understand your true earnings.
Selling products online through marketplaces like Etsy, Amazon, eBay, or Shopify (with marketplace integrations) can be a fantastic way to reach a broad audience. However, it's crucial to understand the true cost of selling to ensure you're actually making a profit. Many sellers overlook various fees, leading to lower-than-expected earnings.
Why Calculate Your Marketplace Profit?
Accurate Pricing: Knowing all your costs allows you to set competitive yet profitable prices for your products.
Profitability Assessment: Determine if a specific product or an entire marketplace strategy is financially viable.
Fee Awareness: Marketplaces often have complex fee structures, including listing fees, transaction fees, commission rates, and payment processing charges. This calculator helps you account for all of them.
Strategic Decision Making: Decide which products to focus on, which marketplaces offer the best returns, or if you need to adjust your business model.
Key Components of Marketplace Costs
When calculating your profit, consider these essential factors:
Product Selling Price: This is the price you list your item for. It's the starting point for your revenue.
Product Acquisition Cost: How much does it cost you to make or buy the product? This is your direct cost of goods sold.
Marketplace Commission Rate: Most marketplaces take a percentage of your sale (and sometimes shipping charges too). This can range from a few percent to over 20%.
Fixed Marketplace Fee: Some platforms charge a small flat fee per transaction in addition to or instead of a commission.
Shipping Cost (Paid by Seller): The actual cost you incur to ship the item to the customer.
Shipping Charge (to Customer): The amount you charge the customer for shipping. This contributes to your gross revenue but needs to cover your shipping costs.
Payment Processing Rate: Payment processors (like PayPal, Stripe, or the marketplace's own system) charge a percentage fee for handling the transaction.
Fixed Payment Processing Fee: Similar to marketplace fees, payment processors often add a small fixed fee per transaction.
How to Use the Calculator
Simply input the relevant figures into the fields above. The calculator will instantly provide you with:
Gross Revenue: Your total income from the sale, including the product price and any shipping charged to the customer.
Total Marketplace & Payment Fees: The sum of all percentage-based and fixed fees charged by the marketplace and payment processor.
Total Costs (incl. Product & Shipping): All expenses related to the sale, including your product cost, the shipping you pay, and all fees.
Net Profit: The final amount you take home after all expenses are deducted from your gross revenue. A positive number means profit, a negative number means a loss.
Example Scenario: Selling a Handmade Item
Let's say you sell a handmade necklace on an online craft marketplace. Here's how the calculator helps:
In this example, your net profit would be approximately $19.56. This detailed breakdown helps you see exactly where your money is going and how much you truly earn per sale.
Always double-check the specific fee structures of the marketplaces you use, as they can vary significantly and change over time. This calculator provides a robust framework for understanding your profitability.