Why most online sellers under-price
A common way to set a price in f-commerce is "product cost plus a bit". It feels safe, but it leaves out the costs that only show up later: the Facebook ad money spent to get the order, the courier's COD charge, packaging, and the parcels that come back unpaid. Each of these is small on its own, and together they can eat the whole profit of an order.
This calculator puts all of them into one price. It treats your ad cost as a cost of every order you take, and spreads the cost of returned parcels across the orders that are delivered, because those are the only orders that bring money in.
How the selling price is worked out
For one delivered order the calculator adds:
- Product and packaging cost — what you pay the supplier or your factory, plus the poly bag, box or label.
- Delivery you pay — only if you give free delivery or pay part of it. If the customer pays the delivery charge, leave it at 0.
- Ad cost per order ÷ delivered share — with a 10% return rate, ৳120 of ads per order really costs ৳133 per delivered order.
- Returned parcels' loss — the return charge and packaging for each parcel that comes back, shared by the delivered ones.
- Your target profit.
The total is divided by (1 − COD charge %) because the courier takes its COD charge from the price itself. The result is rounded up to the next ৳10 so it reads well in a post.
Check the price you already use
Type your current price in the last box to see your profit per delivered order and your margin. If the profit is lower than you expected, look first at the return rate and the ad cost per order: those two usually move the number more than a few taka on the product cost.
Keep the numbers honest
Use your own figures from last month: your ad spend divided by the orders it brought, and your returned parcels divided by all parcels sent. The values already in the boxes are only examples. If you run your shop on eCommerce Autopilot, the profit calculator and the profit & loss report use the real cost, courier charge and return of every order, so you do not have to estimate.