Calculate Your Ecommerce Profit Margin
Your Profit Margin
Net margin after all fees
How Ecommerce Profit Margins Work
Gross margin is your selling price minus product cost and shipping. Net margin subtracts platform fees and payment processing on top of that. Most ecommerce businesses track gross margin but forget to subtract the 2.9% processing fee and any platform-specific charges, which quietly eat 3 to 18% of every sale depending on where you sell.
A healthy ecommerce net margin sits between 30% and 50%. Below 15%, a single return or refund can wipe your profit on that order. Above 50%, you have room for paid advertising and seasonal discounts without going negative.
Platform Fees That Affect Your Margin
Different platforms take different cuts. WooCommerce and Shopify (with Shopify Payments) charge 0% platform fee on top of payment processing. Squarespace Basic adds a 2% transaction fee. Etsy takes 6.5% per transaction. Amazon FBA averages roughly 15% in referral fees depending on category.
Payment processing (typically 2.9% plus $0.30 per transaction via Stripe or equivalent) applies on every platform. This is the one fee you can’t avoid regardless of where you sell.
For platform comparisons that affect your margins, see our Shopify vs Squarespace comparison and best free ecommerce platforms guide.
Choosing an ecommerce platform?
See how platform fees affect your margins across Shopify, Squarespace, and WooCommerce.
Frequently Asked Questions
What is a good ecommerce profit margin?
A healthy net ecommerce margin is 30 to 50% after all fees. Below 15% is risky because returns, refunds, and advertising costs can push individual orders negative. Above 50% gives you room for growth spending without threatening profitability.
How do platform fees affect my margin?
Platform fees reduce your net margin by 0% (Shopify with Shopify Payments, WooCommerce) to 15% (Amazon FBA). A product with 40% gross margin drops to 25% on Amazon after the 15% referral fee. On Shopify with no platform fee, the same product keeps its 40% minus only payment processing.
Does this calculator include advertising costs?
No. This calculator covers product cost, shipping, platform fees, and payment processing. Advertising costs (Google Ads, Facebook Ads, influencer marketing) are variable and should be modeled separately. A common rule of thumb is to keep customer acquisition cost below 30% of your net margin.
Why is my Amazon margin so much lower?
Amazon charges approximately 15% in referral fees (varies by category) plus FBA fees for storage and fulfillment if you use their warehouse. These fees are significantly higher than selling on your own Shopify or WooCommerce store where the only transaction cost is payment processing at 2.9%.
Related Ecommerce Guides
- Shopify vs Squarespace 2026
- WooCommerce Review 2026
- Best Ecommerce for Small Business
- Best Free Ecommerce Platforms
