Define your target margin
10 min
Pick a gross margin target. For most UK sellers, 20% is the floor (enough to cover overheads and pay yourself). 30% is healthy. 40%+ is premium. This number is your anchor — every pricing decision derives from it.
- Gross margin = (Net revenue - COGS) / Net revenue.
- Net revenue = Sale price - all marketplace fees.
- COGS should include shipping cost to the buyer.