Marketplace Seller Fee Calculator
Marketplace economics after commission, logistics and returns. A return does not just cancel a sale: the outbound cost is already spent and the return shipping is charged again, so a twelve percent return rate costs far more than twelve percent of profit.
Also called: amazon seller calculator, flipkart fee calculator.
$612.97 per sale after a 12% return rate, from $674.15 before returns. Total marketplace costs are $424.85, which is 21.25% of the selling price.
How this is calculated
Commission, shipping and collection all come off the selling price. Returns are the part that catches sellers: the item ships out, comes back, and both legs are charged, so a returned order costs money rather than merely making none. At double-digit return rates in categories like apparel, the return provision is often larger than the net margin, which is why the break-even price is shown.
a return costs the fees twice over and returns the product in unknown condition- P
- Selling price
- r
- Return rate
Method and limits
What it assumes
- Returned goods are resellable, which in apparel is often optimistic.
What it deliberately does not model
- Advertising on the marketplace is not included and is usually necessary.
- Tax treatment of marketplace supplies varies and is simplified here.
Formula version 1.0.0 · definition 1.0.0 · United States · Report a problem with this calculator
Frequently asked questions
- Why do returns hurt so much?
- Because both shipping legs are charged and the commission on the original sale is often not fully refunded. One return can wipe out the profit on several completed orders.