eBay Seller Knowledge
Profit Concepts
Master the mathematical formulas for net payouts, gross margin, markup, and break-even sales prices.
Margin vs Markup: Margin is profit divided by revenue; markup is profit divided by cost.
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Profit Concepts
Formula
Profit Logic
Deductions
Accounted For
Break-Even
Calculators Link
Guides In This Section
Deep Dive: Understanding Profit Concepts
Mastering ecommerce math is the difference between running a hobby and a business. You must understand how to calculate Gross Profit, Net Payout, Gross Margin, and Markup. Factor in all variable costs (sourcing cost, packaging, postage, FVF, and advertising) to find your true break-even selling point.
Reseller Math Formulas
- Net Profit = Total Revenue (buyer payment) - COGS (sourcing cost) - Fees - Shipping Labels.
- Gross Margin % = (Net Profit / Total Revenue) * 100.
- Markup % = (Net Profit / COGS) * 100.
- Break-Even Price = (COGS + Shipping Cost + Transaction Fee) / (1 - FVF% - Ad% - Tax%).
Run Net Profit Math
Input your product costs, shipping expenses, and FVF rate to see your Net Profit and Margin.
