Pricing
Selling price calculator
Most pricing goes the wrong way round. People pick a price, then find out what is left. This starts from the margin you actually need and works backwards through commission, shipping, GST, ads and returns to the number you should put on the listing.
What you are selling
This category exists on all three marketplaces, so you can switch between them and compare.
Net margin here means what is left after fees, GST, ads and returns, not gross margin on cost.
₹1,541
List at this price on Amazon
₹308.30
You keep per order
20.0%
Net margin
28.4%
Goes to Amazon
A product costing ₹350 has to sell for 4.4 times that on Amazon to hit your target, once fees, GST, ads and returns have been paid. If that price looks too high for the category, the honest answers are a cheaper supplier, a lighter pack, or a different product.
What happens either side of that price
| List price | Commission | You keep | Margin |
|---|---|---|---|
| ₹1,233 | 14.0% | ₹131.58 | 10.7% |
| ₹1,387 | 14.0% | ₹219.94 | 15.9% |
| ₹1,541Target | 14.0% | ₹308.30 | 20.0% |
| ₹1,695 | 14.0% | ₹396.67 | 23.4% |
| ₹1,849 | 14.0% | ₹485.03 | 26.2% |
Watch the commission column. Where it jumps between two rows, you have crossed a slab edge, and the profit below it will not move the way you expect.
The breakdown at your target price
What the buyer pays
₹1,541.00
GST on the product (18%)
Collected from the buyer and paid to the government. It was never your money.
-₹235.07
Amazon commission (14%)
-₹215.74
Closing fee
-₹45.00
Shipping fee
-₹110.00
GST on marketplace fees (18%)
-₹66.73
TCS (1%)
Deposited against your GSTIN. You claim it back when you file.
-₹13.06
Settlement into your bank
₹855.40
Product cost
-₹350.00
Packaging
-₹15.00
Advertising (10% of sale)
-₹154.10
Returns allowance (10% return rate)
Spread across every order so one bad return does not surprise you.
-₹28.00
Net profit per order
₹308.30
How this works
- You give it a cost and a target, and it searches for the lowest price that reaches that target rather than solving an equation.
- That matters because commission bands step up at fixed prices, so profit does not rise smoothly with price and simple algebra gets the wrong answer.
- Net margin here means what is left after fees, GST, ads and returns, not gross margin on cost. The two are often twenty points apart.
- The ladder underneath shows what happens at twenty percent either side of the recommended price, so you can see where the slab edges sit.
- If no price can reach your target, it says so instead of quietly returning a number that does not work.
Questions sellers ask
What net margin should I aim for?
Ten to fifteen percent is a working floor for most marketplace categories, and it leaves enough room that a bad return month does not put you under water. Fifteen to twenty five is healthy. Below eight percent you are effectively working for the marketplace, because a single fee revision or a small rise in returns takes the rest.
Why is the price so much higher than my cost?
Because a lot of things come out between the two. Commission, closing fee, shipping, GST on all of those, ads, and the cost of returns. On a typical category the total is thirty to forty percent of the selling price before your product cost is counted at all. Three times cost is common and is not greed, it is arithmetic.
The recommended price is above what the category sells at. What now?
Then the product does not work at your current cost, and no amount of pricing cleverness fixes that. The three real levers are a cheaper supplier, a lighter or smaller pack so shipping drops, or a different product. Discovering this before you buy stock is a good outcome, even though it does not feel like one.
Should I price just below a round number?
Often yes, and for a better reason than psychology. Commission bands change at fixed prices in most categories, so listing at four hundred and ninety nine instead of five hundred and ten can keep you in a lower band on the whole order. The ladder on this page shows you where those edges are.
Does this work for a product I have not launched yet?
That is the best time to use it. Put in the supplier quote, the expected pack weight and a realistic return rate for the category, and you will know whether the product can carry a marketplace before you pay for the first shipment.