Guides

How to price a product when transaction fees apply

Work backward from cost, percentage fees, a flat fee and a target contribution margin.

Use the fee model you actually have

Keep a percentage fee and a flat fee separate. A provider may apply its fee to shipping, tax or a whole order, so record how you allocated it to one unit.

The working formula

Under the simplified assumptions, required price equals cost plus flat fee, divided by one minus the percentage fee and target margin. If the fee and margin reach 100%, the model must reject the input.

Review after real sales

Compare the plan with actual transaction exports, refunds and fulfilment costs. An editable assumption is safer than a hardcoded marketplace fee.

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