I always price at double my cost; why is that not enough when I sell on a platform that takes commission?

Because the commission comes out of the doubled price itself. A product costing 50 sold at 100 on a platform charging 15% hands 15 to the platform, leaving a profit of 35, not 50. For your markup to really stay at 100%, the price has to be 117.65.

Published · 2 min read

Where the doubling rule comes from

In a traditional shop, a trader bought at one price and sold at twice that, and the rule worked because other expenses came out of total sales rather than each item. On a marketplace the picture changes: part of every price goes to the platform before it reaches you, so double is no longer double.

What actually happens

Worked example

No commission: cost 50, markup mode at 100%: price 100, profit 50.

The same price of 100 with 15% commission: commission 15, profit 35, a real markup of only 70%.

Markup mode at 100% with 15% commission: price 117.65, commission 17.65, profit 50.

In the last case profit is back to 50, double the cost as you intended. The margin as a share of price is 42.5%, though, because part of the price went to commission.

Using the calculator your way

  1. In the Selling-price calculator, choose how you set profit: markup on product cost.
  2. Enter the product cost and type 100 as the target markup.
  3. Enter the platform commission as the percentage fee.
  4. If you pay shipping, add it: a product costing 50 with shipping of 15 and 15% commission comes out at 135.29.

In this mode markup is measured on product cost only; other costs are added as they are and the price is lifted to cover the commission. That matches how you think if you are used to the doubling rule.

Do not confuse a 100% markup with a 100% margin

If you choose margin mode and type 100, the tool refuses with 15% commission, because commission plus margin make 115% of the price and no price can do that. A 100% margin would mean the whole price is profit and cost is zero, which is impossible. Doubling equals a 100% markup, which is only a 50% margin before any fees. To see how the two relate on your own numbers, try the Profit margin calculator.

Common questions

Should I raise all my prices by the commission rate?

Do not add the rate straight onto the price, as commission will be taken from the addition too. Let the calculator solve the right price.

Is the doubling rule right for my products?

The tool does not judge that. It only makes sure the markup you choose survives the commission.