Marketplaces & sellingPractical guide · updated for 2026
How to Price a Product for Online Sales
Start from your full cost per unit including fees, shipping and returns, then add a margin that survives a discount. A price that only works at full price is not a price, it is a hope.
Have this ready
- Unit cost and shipping quotes
- Payment fee schedule
- Two or three comparable products and their prices
Step by step
- 1Add up the unit cost, packaging, shipping to the customer and payment fees.
- 2Estimate returns, refunds and breakage as a percentage and add that to the cost.
- 3Divide your fixed costs by the number of units you expect to sell and add that per unit.
- 4Set a price with a margin you can defend, then check what comparable products charge.
- 5Test the price with a small amount of traffic rather than guessing from a competitor's sticker price.
- 6Check the price still works at a 20 to 30 per cent discount, because promotions will happen.
- 7Review the price once you have real conversion and return data.
Want it done with you?
I can walk you through it in a Magic Box, show you the exact clicks, or do it with you and keep the recording. You log in yourself; I never see your password.
Common questions
Should I match the cheapest competitor?+
Only if your cost structure allows it. Competing on price alone usually ends with no margin.
How do I account for payment fees?+
Add the percentage plus the fixed fee to the unit cost, and include currency conversion where it applies.
Does free shipping work?+
It converts better for many products, but the shipping cost has to be inside the price. Show it as part of the total, not as a surprise.