What pricing strategy works best for new Amazon listings?

Launch at or near the median competitor price — not the lowest. Pricing too low trains buyers to expect discounts and attracts coupon hunters. Once you have 15–30 reviews and your conversion rate is above 10%, test raising price by $1–2 increments every 2 weeks. Most sellers undercharge early and leave substantial margin on the table.

What is cost-plus pricing vs. value-based pricing?

Cost-plus pricing: add a fixed markup to your cost (e.g., 2× your landed cost). Simple and ensures profitability but ignores what customers are willing to pay. Value-based pricing: charge what the market will bear based on perceived value. For commodity products on Amazon, cost-plus is a floor; for differentiated or branded products, value-based often unlocks higher margins.

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Product Pricing Calculator

Enter your costs and target profit margin — estimate the price you should charge

The Product Pricing Calculator tells you the minimum price you should charge to hit your target profit margin. Instead of guessing or copying competitors, you start with your actual cost structure and work forward to the price. This ensures every product you list is profitable before you launch — not after you've already stocked inventory.

Your total cost per unit ($)Target profit margin (%)

Suggested selling price$21.43

Profit per unit$6.43

Markup on cost42.9%

Margin on revenue30%

Formula: Price = Cost ÷ (1 − Target Margin%). For Amazon FBA, include all fees in your cost before calculating.

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Pricing is one of the most important and most under-analyzed decisions in e-commerce. This calculator helps you set prices scientifically rather than guessing.

Step 1 — Enter your total cost per unit

For Amazon FBA: add product cost + inbound shipping + FBA fee + referral fee. This is your all-in variable cost per unit. For other platforms: add product cost + shipping cost + platform fee. The goal is to capture every dollar you spend per unit sold.

Step 2 — Enter your target margin

Start with your minimum acceptable margin (e.g., 20%), not your ideal margin. This gives you the floor price below which you should not list. Then run the calculator again at your ideal margin (e.g., 30%) to see where you'd need to price to hit that goal.

Step 3 — Compare to market price

After calculating your required price, compare it to what competitors charge for similar products. If your required price is significantly above the market, you need to reduce costs (source cheaper, optimize packaging, reduce tier) or find a different product. If your required price is below the market, you have pricing power.

💡 Pro tips

•Amazon FBA: your 'cost' should include COGS + shipping + FBA fee + referral fee before using this tool
•Price to your target margin, not to undercut competitors — margin compression is a race to the bottom
•New products on Amazon should launch within 10% of the median market price to get initial traffic
•Use the Reverse Calculator in the FBA Calculator to cross-check: both should give the same answer

Frequently Asked Questions

Start with your total landed cost (COGS + inbound shipping), add Amazon fees (referral + FBA), then apply your target margin. Formula: Price = Total Cost ÷ (1 − Target Margin %). For a product costing $15 all-in with a 30% target margin: Price = $15 ÷ 0.70 = $21.43. Always compare the result to competitor pricing before finalizing.