Profit Margin Calculator: Calculate Your E-commerce Profit
Calculate your real profit margin for e-commerce. Enter your selling price, product cost, shipping, and fees to see your actual margin.
Amazon, Etsy, etc.
Stripe, PayPal, etc.
Enter values to calculate
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What is Profit Margin?
Profit margin measures what percentage of your selling price remains as profit after all costs. For e-commerce, this includes product cost, shipping, platform fees (Amazon, Etsy), and payment processing fees (Stripe, PayPal).
Profit Margin Formula
Profit Margin = ((Price - All Costs) ÷ Price) × 100Profit Margin Benchmarks in E-commerce
Average net margins vary by e-commerce model:
- Dropshipping: 15-20% (low costs, high competition)
- Private label: 25-40% (more control over costs)
- Handmade products: 40-60% (high perceived value)
- Digital products: 70-90% (no marginal costs)
Questions Fréquentes
What is a good profit margin in e-commerce?
A net profit margin of 20-30% is considered good in e-commerce. Below 10% is tight, above 40% is excellent.
How do platform fees affect my margin?
Amazon takes 15-45% depending on category. Etsy around 11%. Always factor these in when pricing.
Should I include shipping in my margin calculation?
Yes, include all costs: product, shipping, fees, packaging, returns allowance. Only then do you see true profitability.
How to improve my profit margin?
Negotiate better supplier costs, increase prices, reduce returns, optimize packaging, or switch to higher-margin products.
What's the difference between profit margin and markup?
Margin is profit as % of selling price. Markup is profit as % of cost. A 100% markup equals a 50% margin.
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