Pricing and Profit Margin Guide for Online Sellers
How new sellers can price products by including cost, packaging, shipping, payment fees, returns, discounts, and profit margin.
Do not price only from product cost
Your selling price should include product cost, packaging, payment fees, shipping subsidy, returns, marketing cost, platform fees, and your profit. If you ignore small costs, a busy store can still lose money.
A simple formula is: product cost plus packaging plus delivery support plus fees plus desired profit. Then compare with market price and customer willingness to pay.
Use margin, not just markup
Markup is added on top of cost. Margin is profit as a percentage of selling price. Sellers should understand both because discounts and shipping offers can quickly reduce real profit.
For example, if a product costs Rs. 500 and sells for Rs. 800, the gross profit is Rs. 300 before other costs. Packaging, payment fees, returns, and ads still need to be subtracted.
Track profit by product
Some products bring enquiries but weak profit. Others sell quietly with better margins. Track sales by product so you know what to restock, bundle, discount, or stop selling.
MyDailySeller helps keep product prices and order totals organized so sellers can understand daily sales without rebuilding numbers from chats.