Breakeven Price

Breakeven price is the sale price where estimated profit reaches zero. It is useful before listing a product because it shows how far price can fall before the product stops working.

What to include

Include product cost, shipping, marketplace fees, payment fees, advertising cost, return reserve, packaging, and tax reserve. Leaving out one cost can make the breakeven point look safer than it is.

Where to test it

Run several sale prices in calculators such as Etsy, eBay, and Shopify.

Use it in a calculator

After reviewing this term, open the marketplace calculator hub or country calculator hub and test the number with a realistic product scenario.