How much does it cost to sell a product after fees?
To know the real gain from a sale, you need to subtract every fee along the way.
The Humanevi newsletter
Once a week: 5 things worth your time.
1 story, 1 idea, 1 discovery, 1 tool, 1 book.
To know the real gain from a sale, you need to subtract every fee along the way.
Short answer: the amount left from a sale is the price minus all the costs tied to it: platform fee, payment fee, shipping, packaging, taxes and the cost of the product itself. Adding everything up before setting the price avoids discovering too late that the sale lost money.
A product sells for $100. The platform charges 14%, payment 3% plus $2, shipping paid by the seller is $10 and the product costs $40 to buy. Fees add up to $14 + $3 + $2 = $19. Subtracting shipping and cost leaves $100 − 19 − 10 − 40 = $31, or 31% of the price. The numbers are illustrative; check the real fees of each platform.
If what is left seems small, there are three paths: raise the price, cut a cost or change the sales channel. Also compare what is left with the time and effort the sale requires.
It is also worth remembering that fees change over time and with the type of listing or selling plan. Review the calculation whenever the platform updates its tables, and record the fees in a spreadsheet so that each new product is priced with the same criteria.