Pricing a product on your own store
On Shopify there is no referral fee, so it is tempting to think your margin is simply price minus product cost. In practice each order pays card processing (a percentage plus a fixed amount), the shipping you pay the carrier, and a share of your fixed monthly costs. For many stores advertising is the largest cost of all, so include it as a percentage of revenue.
Fixed costs behave differently from per-order costs: the more you sell, the less each unit carries. The calculator spreads them over the units you expect to sell in a month, so try a cautious volume as well as an optimistic one and price for the cautious case.
Illustrative inputs, not a quote from any platform. Calculated with the same engine as the calculator above.
- Product cost
- $14.00
- Packaging
- $1.00
- Shipping paid to carrier
- $6.00
- Shipping charged to customer
- $5.00
- Card processing
- 2.9% + $0.30
- Plan and apps per month
- $79.00
- Units per month
- 120
- Target margin
- 30%
| List price | $27.73 |
| Shipping charged to customer | $5.00 |
| Customer pays (incl. tax) | $32.73 |
| Indirect tax collected for authorities VAT / GST / sales tax — not seller revenue | $0.00 |
| Net revenue | $32.73 |
| Card processing rate Payment processing · 2.9% of order total incl. tax (32.73) | −$0.95 |
| Card processing fixed fee Payment processing · fixed per order | −$0.30 |
| Product cost 14.00 USD per unit | −$14.00 |
| Packaging 1.00 USD per unit | −$1.00 |
| Outbound shipping 6.00 USD per unit | −$6.00 |
| Contribution profit Contribution margin 32.02% | $10.48 |
| Monthly plan and apps Allocated · 79.00 USD ÷ 120 units | −$0.66 |
| Profit after allocated overhead | $9.82 |
| Margin | 30.01% |
| Markup on total cost | 42.88% |
Card rates and plans change
The typical-fee button loads the Basic plan's US online card rate and links to Shopify's pricing page. Rates differ by plan, country and card type (for example international cards), so confirm the numbers in your Shopify admin. If you sell on marketplaces too, compare channels with the Amazon, Etsy and eBay calculators.