Why margin matters before launch
Revenue is not profit. A product can look successful in the dashboard and still lose money after product cost, shipping, payment fees, returns, packaging, apps and ads.
For a new store, margin math is less about precision and more about avoiding obvious traps. You need a model that shows whether the order can survive normal costs.
The basic formula
Start with this simple model:
| Line item | Example question |
|---|---|
| Retail price | What does the customer pay before tax? |
| Product cost | What does the item cost you or the supplier charge? |
| Shipping and packaging | What is the realistic cost for your package size and destination? |
| Payment fees | What does the payment processor charge? |