How pricing and profit work
Target margin, payment fees, price endings - and why sales profit and commission stay separate.
Applies to: Pricing, product edit
Set a target, not a multiplier
A 20% target margin is not the same as adding 20% to your cost. Buy at $20, add 20%, and you sell at $24 - but after a payment fee of about $1.10 you have kept roughly $2.90, which is 12% of the sale rather than 20%.
So we solve for the price that leaves you the margin you asked for after fees: (cost + fixed fee + markup) divided by (1 - fee rate - target margin - risk buffer). Then your chosen price ending is applied.
- Target profit margin: what you want to keep, as a share of the selling price.
- Fixed markup: an amount added on top, for flat handling costs.
- Minimum profit: a hard floor in currency, so small items stay worth selling.
- Payment fee: your provider's percentage plus fixed fee, taken from the platform default unless you override it.
- Risk buffer: a cushion for returns, fee variance and small surprises.
- Price ending: .99, .95, .00, or no rounding.
Product screens have a Calculate price button and a View calculation disclosure that shows the exact numbers behind the suggestion.
Sales profit vs commission profit
These are two different things, and we never add them into one number without telling you which part is which:
- Sales profit = selling price minus supplier cost, shipping and payment fee. This is money you keep from the sale.
- Estimated commission = what an affiliate programme might pay on top, if you are registered for it and the order qualifies.
Commission is always shown as estimated or potential. It is never guaranteed: it depends on the programme's rates, its attribution rules, your account status and whether the specific order qualifies. Matching commission can take weeks to appear in the programme's own dashboard.
Not covered here? Open settings or message the platform admin.