How much you keep from each marketplace sale
Selling on a marketplace gives you instant access to millions of shoppers, but every sale pays several fees. Comparing channels by commission alone hides the real cost: fixed fees, shipping paid by the seller, payment processing and ads can take more than a third of the price.
What each channel charges
- Commission (referral or final value fee): a percentage of the price, which varies by category.
- Fixed fee: a flat amount per item or per order, such as a listing or transaction fee.
- Seller-paid shipping: when free shipping is mandatory or expected, part or all of it comes out of the seller’s pocket.
- Other fees: payment processing, sponsored ads, fulfillment programs and, in your own store, the marketing that brings in visitors.
Profit per sale
Profit = price × (1 − taxes in price − commission − other fees) − product cost − packaging − fixed fee − shipping
Minimum price
The minimum price for a target margin is (product cost + packaging + fixed fee + shipping) ÷ (1 − taxes − commission − other fees − target margin). It tells you whether a channel can work at the price the market accepts.
Own store vs. marketplace
Your own online store pays lower fees per sale, but it has to buy its own traffic with ads, content and email. A common strategy is to use marketplaces to gain volume and reviews and to bring repeat customers to your own store, where the margin is higher. Fees change often and vary by category and seller rating: always check the current fee tables.