How to Price Your Products to Cover Marketplace Fees (2026)
Last updated May 2026
Pricing by gut feeling is how sellers lose money. The right price has to cover your product cost, the platform's cut, and the profit you actually want to keep. Here is a simple way to get it right every time.
Start with your true costs
Add up everything a sale really costs you: the product itself, packaging, and the shipping you pay (if you are not passing it to the buyer). This is your base cost — the floor your price must clear before any profit.
Add the platform's cut
Marketplace fees are a percentage of the total the buyer pays, including shipping. eBay takes about 13.6% + $0.40, Etsy roughly 10–11%, and Amazon around 15%. Payment processors like PayPal or Stripe take about 3% on top if they are separate.
Because the fee is a percentage of your price, you cannot just add it to your cost — raising the price also raises the fee. That is why you work backwards.
Work backwards from your target margin
Use this formula: price = cost ÷ (1 − fee% − margin%). Say your cost is $40, the platform takes 13%, and you want a 25% margin. That is $40 ÷ (1 − 0.13 − 0.25) = $40 ÷ 0.62 ≈ $64.50.
At that price the fee and your margin are both covered. Lower your target margin and the price drops; raise it and the price climbs.
Check it with a calculator
Plug your numbers into our profit margin calculator to see your margin and markup, then confirm the after-fee profit with the platform fee calculators below — or compare every platform at once to find where the same price keeps you the most.