Core formula
Profit = Sale price - platform/payment fees - shipping/packaging - sourcing cost
Example 1: Healthy margin
Sale 79 EUR - fees 10.20 EUR - shipping/packaging 6.80 EUR - sourcing 35 EUR = 27 EUR profit
Example 2: Thin margin
Sale 39 EUR - fees 5.40 EUR - shipping/packaging 5.90 EUR - sourcing 24 EUR = 3.70 EUR profit
Example 3: Negative deal
Sale 29 EUR - fees 4.30 EUR - shipping/packaging 5.90 EUR - sourcing 21 EUR = -2.20 EUR
Operational rule for faster decisions
- Set category-based minimum margin thresholds.
- Use realistic shipping cost assumptions, not generic estimates.
- When margin is thin, review sourcing cost first as your biggest lever.