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Finding Your Break-Even Price

1 min read · Profit and numbers

The break-even price is the lowest you can sell for without losing money.

How to find it

Add your full cost per unit to the fixed fulfilment fee, then divide by one minus the referral fee rate.

Example

Cost $31, fulfilment $7, referral 15 percent: (31 + 7) ÷ 0.85 = about $44.70.

Use it

Set it as your repricer minimum
Decide quickly when the market drops

When to go below

Only to clear stock that is costing you storage.

General information for resellers, not financial, tax or legal advice. Marketplace fees and policies change; check the current rules before you buy.

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Keep reading

Profit and numbersSize and Weight: Why Bulky Items Cost More

Fulfilment and shipping fees depend on size as well as weight.

Profit and numbersWhat to Track in a Reselling Spreadsheet

A simple spreadsheet shows which products and stores actually make you money.

Profit and numbersHow to Calculate ROI on a Resale Deal

The formula for profit and ROI on a resale item, with a worked example.