Calculate the required selling price for a physical product based on cost, shipping, packaging, fees, advertising, and target margin. Use it to avoid underpricing.
Recommended price shows what you need to charge to reach the target margin after fees and variable selling costs.
Benchmarks vary by product category, channel, fulfillment model, and customer segment. Use the result as a decision estimate, not accounting advice.
If total fixed cost is $43, fee rate is 15%, and target margin is 35%, recommended price is $86.
Add product, fulfillment, packaging, ads, and fees, then divide by the remaining share after target margin and percentage fees.
Retail markup often ranges from 40–60% or higher, but markup must be checked against net margin after all selling costs.
Shipping should be included in your cost base or recovered through shipping revenue, free shipping thresholds, or higher product price.
Yes. Marketplace and payment fees reduce net revenue, so they must be included in price calculations.
A strong Shopify pricing strategy balances margin, perceived value, competitor positioning, shipping threshold, and conversion rate.
| Metric | Meaning |
|---|---|
| Main Result | Primary number used for decision-making. |
| Health Score | 0–100 score based on profitability, operating efficiency, or risk. |
| Status | Excellent, Good, Average, or Needs Improvement. |
| Recommendation | Automatic next action based on the result. |