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Profitability Calculator
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Profit per Unit: $0.00
Total Profit: $0.00
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How to get the most from the eCommerce profit calculator.
Input Accurate Data
To obtain precise results, ensure that you enter the correct information for each field. Double-check the product cost, selling price, quantity, shipping cost, and storewide return rate before hitting the “Calculate” button.
Consider All Costs
When entering the product cost, take into account all expenses associated with acquiring the item, including manufacturing, shipping, promotion, and any applicable taxes or fees.
Do Competitor Research
Before setting the selling price, research your competitors’ pricing strategies. Understanding the market rates will help you make informed decisions about your own pricing.
Test Various Scenarios
The calculator allows you to experiment with different quantities and selling prices. Try out various scenarios to determine the most profitable combination for your business.
Plan for Growth
As you optimize your pricing and product selection, consider your long-term business goals. Focus on products that not only yield good profits but also align with your growth strategy.
Check Back Often
As your business evolves, make sure to update your calculations with the most recent data. Reviewing and adjusting your selling prices and costs will help you stay competitive and maximize your profits.
Frequently Asked Questions
How do you calculate eCommerce profit?
To calculate eCommerce profit, subtract all expenses (such as product cost, shipping, marketing, and overhead) from the total revenue generated through online sales. The formula for eCommerce profit is:
Profit = Total Revenue – Total Expenses.
What is the average profit margin for eCommerce?
The average profit margin for eCommerce can vary depending on the industry and business model. However, as a rough estimate, eCommerce businesses often aim for a profit margin between 10% to 30% of the total revenue.
What is considered a good profit margin?
A good profit margin varies by industry, but as a general guideline, a profit margin higher than the industry average is considered good. A profit margin of 20% or higher is often considered favorable.
What is the average order value of an eCommerce business?
The average order value (AOV) of an eCommerce business is calculated by dividing the total revenue generated by the number of orders received. For example, if a business made $10,000 from 500 orders in a month, the AOV would be $20 ($10,000 / 500).
How do you calculate 30% margin?
To calculate a 30% margin, first, determine the cost of the item. Then, divide the cost by 0.7 (which represents 100% – 30% margin) to find the selling price.
Selling Price = Cost Price / 0.7.
How do you calculate 200% profit?
To calculate a 200% profit, first, determine the total cost of the item. Then, multiply the cost by 2 (or 200%) to find the selling price.
Profit = Cost Price * 2.
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