Determining a price for your products can be one of the more challenging decisions when selling online.
To make this process a little bit easier we’ve built a tool that you can use which will help you determine your final profit on an item after fees and markups.
The final item price shown above should be used only as a guideline. Also note that Hello Pretty charges an R10 per payout fee (not included in the above calculation), which is only charged per payout – so, if you make more than one sale per week, you will only be charged the R10 once.
Ultimately, the final price you sell your products for is up to you, but here are a few suggestions to get you started:
- Think about wholesale pricing when determining a final sale price. As a general rule of thumb, a markup of 50-100% is fairly standard on most products. This allows you to leave room for wholesale pricing, and still make money on the sale. Someone looking to buy your products in bulk for resale will generally expect a discount between 30 to 60 percent.
- Decide whether to include shipping in the final price, or to make it extra. Customers get turned off by high shipping costs. They’re more likely to buy a pricier product with free shipping, than the same product at a reduced price with shipping charges. Consider bundling your shipping costs into your product price, and offering free or reduced shipping. Remember that Hello Pretty charges commission on the total price including shipping.
- If you’re selling a low-price (eg greeting cards) item, consider selling it in a set. This is especially important for small, less expensive items as shipping costs can overwhelm the final sale price. For example, if you’re selling cards, create products that are a pack of cards rather than (or in addition to) listing each card individually. Selling in sets also encourages people to buy a little more.
- Find out what price consumers pay for similar products by comparison. Search Hello Pretty and other marketplaces for similar products to see what other people are charging. Unless your product has something extremely unique about it, or the materials used are more expensive, you’ll probably want to base your final price on something in the same range as customers may be comparing prices too.