Cost is defined by our platform as the wholesale price - the per-unit cost of a product to retailers. The cost you list should not include any anticipated distribution or shipping costs. Buyers understand these specific details will be worked out later and are not included in your cost.
The Manufacturer's Suggested Retail Price (MSRP) is the price point that the manufacturer suggests a Retailer sells their product at. This price should reflect the estimated value of a product to consumers.
Cost and MSRP are used to calculate the Gross Margin (or the return) of a product.
The Buyer Gross Margin is calculated as follows:
Buyer Gross Margin = (MSRP - Cost of Goods) / MSRP
Example: MSRP is $9, and the Cost to a buyer is $6.
($9-$6) / $9 = 3 / 9 or a 33% Margin.
It is encouraged to input more information about your pricing in the "Pricing Comments" field in your Product Profile Form. You may want to clarify your minimum purchase quantity or any other details about your pricing. Please note that unrealistic prices such as $0.01/$0.02 for products will not be approved. Feel free to review this Help Center article for more information on pricing comments.
Buyers understand that these figures are just estimates, so the final cost is still up for negotiation between you and any interested retail buyers.
Are Your Products Not Getting Approved?
Pricing is a mandatory field because it gives buyers an idea of how much an item costs, and how much they can possibly make in return. In order to have your products approved and published, the products will need to reflect realistic pricing. What this means is you should not insert any pricing such as $0.01/$0.02 for Cost/MSRP respectively to try and avoid pricing.
You also want to make sure that your pricing does not include any shipping or distribution costs as all these terms are negotiable.
As part of Premium, you will gain access to the Industry Insights feature! With Industry Insights, you will be able to compare MSRP & Margins for all products within your category, as well as other information on trending packaging types, keywords, and what MSRP/Margins buyers have shown the most interest in. You can subscribe or request more information here.
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