Worked example

Order revenue$60
Product + delivery costs$32
Fees + ads + reserve$15
Net profit$13 (21.7%)
Net profit = revenue − product − fees − ads − fulfillment − shipping − returns reserve

Use the money the seller actually keeps

Start with the customer's post-discount item price plus seller-recognized shipping income. Exclude collected tax when it is remitted and not retained as revenue.

Seller-funded coupons reduce revenue. Platform-funded promotions may be reimbursed differently, so use the settlement statement.

Separate percentage and per-order costs

Referral and payment fees usually scale with revenue. Fulfillment, packaging and seller-paid shipping may be fixed or weight-based.

Advertising should be assigned per order using attributed or blended spend, with the attribution method documented.

  • Product landed cost
  • Marketplace and payment fees
  • Fulfillment, packaging and shipping
  • Advertising and returns reserve

Scale only after unit economics work

Multiplying a loss by more orders does not create a viable business. Check profit per order, contribution margin and break-even ad spend first.

Then estimate monthly profit using a realistic sales mix, because different SKUs and channels can have very different economics.

Use your numbers

Turn the example into your estimate.

The calculator keeps every assumption visible and updates the result as you type.

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