How this calculator works
Marketplace fees are rarely a single number. There is usually a commission, a payment processing charge, a fixed amount per transaction, sometimes a listing fee, and sometimes an advertising cut — and several of them are charged on the shipping you collected as well as the item price.
Enter your channel’s actual structure rather than a remembered headline rate, and this shows what lands in your account.
The formula
- Fee base = item price + shipping charged (when the channel charges on shipping)
- Total fees = fee base × (commission % + payment % + ad %) + fixed fee + listing fee
- Net revenue = item price + shipping charged − total fees
- Profit = net revenue − unit cost − actual shipping cost
- Required price = (cost + shipping cost + fixed fees) ÷ (1 − target margin − percentage fees)
What to watch for
- Most marketplaces charge their percentage on the total the buyer pays, shipping included. That makes "free shipping" more expensive than it appears — you absorb the postage and pay commission on it.
- Fixed fees matter most on cheap items. Forty-five cents on a $6 product is 7.5% of the price; on a $60 product it is under 1%.
- Offsite advertising fees can be the largest single line when they apply, and they are usually charged only on attributed orders — so your effective rate varies month to month.
- This tool is channel-agnostic on purpose. Published fee schedules change, and a hard-coded rate would silently go stale.
Common mistakes
- Remembering only the headline commission and forgetting payment processing on top.
- Assuming fees apply to the item price only when most channels charge on shipping as well.
- Charging less for shipping than it costs, then paying commission on the shortfall.
- Using one price across every channel when the fee load differs by ten percentage points or more.
Frequently asked questions
How much do marketplaces actually take?
For a handmade marketplace, a commission of around 6.5% plus roughly 3% payment processing, a fixed fee per order and a small listing fee typically lands near 10% to 12% of everything the buyer pays. General marketplaces charging 15% commission come out higher. Offsite ad fees, where they apply, can add substantially more.
Are fees charged on shipping?
On most marketplaces, yes — the commission and payment processing apply to the full amount the buyer pays, including postage. This is why offering free shipping costs more than the postage alone: you absorb the shipping and still pay a percentage on the higher item price you used to cover it.
What price do I need to charge on a marketplace?
Divide your cost, plus any fixed fees, by one minus your target margin minus the percentage fees. At a $16 cost, 9.5% in fees and a 35% target margin, you need roughly $29 before shipping. The calculator does this for you in the "price needed" figure.
Should I sell on a marketplace or my own site?
Marketplaces bring traffic you would otherwise pay to acquire, and around a tenth of the price is the cost of that. Your own store keeps far more per sale but you supply the visitors. Most established makers run both and price each channel separately rather than setting one price and absorbing the difference.