Pricing is the hardest part of starting an online store. Price too high and shoppers leave; price too low and you work for nothing. The good news is that a simple process keeps you on safe ground.
Start with your total cost per unit, including the product, shipping, packaging, and fees. Add the profit margin you want, usually 20 to 40 percent for a new store. Then check what competitors charge for similar products. If your number is far above theirs, look for ways to cut costs instead of accepting a thinner margin.
Avoid the common traps: copying a competitor’s price without knowing their costs, forgetting about returns and discounts, and setting prices once and never reviewing them. Revisit your prices every few months as costs change.
Use our free Profit Margin Calculator to test any price in seconds and see exactly what you would earn on each sale.
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