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Every product has a floor price beneath which every sale quietly loses money, and the floor is arithmetic, not instinct. It starts with your cost of goods and shipping, then layers the platform's fee percentage — which applies to the final price, so low prices actually carry proportionally heavier fees — and finally the margin you personally need to survive. Because fees compound on top of costs, the floor must be solved backwards. This calculator does exactly that, then suggests an opening price 10% above the floor, because most sellers discover demand barely notices a modest step above the break-even line while their bank account certainly does.
Your floor price is the one that covers cost of goods, shipping and platform fees AND leaves a margin you can survive on. Enter the numbers and get the minimum price that keeps you in business — plus an honest read on how competitive the shelf is.
Then you have a cost problem, not a pricing problem — the product cannot sustain you at market rates. Options: cheaper supply, smaller sizes, bundling with a profitable item, or dropping the product. No volume of sales fixes a negative margin.
A realistic solo-seller target is 30-50% after fees and shipping, because your unpaid time, returns and mistakes all come out of margin. Beginners who set 10% margins are effectively working for the platform.
Yes — treat the floor as a red line, not a target. Test 10-20% above it first; niche products and handmade goods routinely sell well above the floor, and you can always step down later. Dropping below the floor is a clearance decision, not a pricing strategy.
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