One of the biggest mistakes Amazon sellers make is pricing products without knowing their break-even point. They end up losing money because they didn't account for all the fees and costs.

Why Break-Even Price Matters

Break-even price is the absolute minimum you can sell at without losing money. It includes all costs:

• Product cost
• Shipping to Amazon
• Amazon referral fees
• FBA fulfillment fees
• Storage fees
• Returns processing
• Advertising costs
• Other expenses

If you sell below break-even, you lose money on every sale. That's why knowing your break-even price is crucial.

How to Calculate Break-Even

Our Break-Even Calculator makes it easy:

1. Enter all your costs (product, shipping, etc.)
2. Select marketplace and category
3. Enter product specifications
4. Add additional costs (PPC, storage, returns)

The calculator automatically:

• Calculates all Amazon fees
• Determines your break-even price
• Shows recommended price with profit margin

Real-World Example

Let's say you have a product with:

• Product cost: $10
• Shipping: $2
• Category: Home & Kitchen (15% referral)
• FBA fee: $3.22
• Storage: $0.50/month
• PPC: $2.50

Break-even price: $21.50

This means you must sell at $21.50 or higher to avoid losses. But you shouldn't sell at break-even - you need profit margin!

Recommended price (with 25% margin): $26.88

This gives you a healthy profit while remaining competitive.

Best Practices

• Never price at break-even - always add profit margin
• Aim for 20-30% profit margin minimum
• Account for all costs, including hidden fees
• Re-calculate when costs change
• Compare break-even across marketplaces