No COGS tracking = invisible losses
Pricing without calculating your real Cost of Goods Sold means some products are priced at a loss and you won't know until cash runs out.
Standard retail margins don't fit handmade
Applying standard 30–60% retail margins to handmade goods ignores your labour time — the biggest cost most makers forget.
Marketplace fees eat your margin
Platform fees, payment processing, and shipping costs reduce your net margin by 15–30% — and most sole traders haven't priced for them.
Why retail and eCommerce pricing needs a formula, not a guess
For online sellers, makers, and micro-manufacturers, the most dangerous pricing mistake isn't charging too much — it's charging too little. Without a clear COGS calculation, the right markup formula, and an understanding of marketplace fees and shipping costs, products that look profitable on paper are often margin-negative in reality. This template gives you Australian market margin benchmarks for standard retail (30–60%) and handmade goods (50–80%); a COGS calculation that includes materials, labour, packaging, and platform fees; and the right markup formula for both resale and made-to-order products. Use the AI pricing prompt to check your pricing against current Australian market comparables for your specific product category before you publish or update your store.
What You Get
Margin Benchmarks & COGS Formula
Standard retail margins: 30–60% for resale, 50–80% for handmade and custom. COGS formula: materials + labour + packaging + marketplace fees. Markup formula: COGS × 1.3–1.6 (resale) or COGS × 1.5–2.0 (handmade). Includes common margin errors to avoid.
Platform & Fulfilment Fee Calculator
A breakdown of typical fee impacts across major Australian platforms: Etsy (6.5% transaction + listing), Shopify (payment processing 1.7–2.0%), Amazon, and direct-to-consumer. Shows the net margin impact of each platform so you can price accordingly.
AI Pricing Benchmark Prompt
A ready-to-use prompt to check your current product prices against comparable listings on Australian and international platforms. Helps identify underpriced products and tests whether a premium price point is defensible in your category.
Who It’s For
Built for sole traders selling physical products through online or market channels in Australia.
Online store owners
Market stall operators
Makers & artisans
Custom product sellers
Etsy & Shopify sellers
Micro-manufacturers
A preview of what's inside
Here are the margin benchmarks included in the free template:
Standard Retail Markup
30% – 60%
Resale and wholesale goods. Keystone markup (100% on cost / 50% margin) is the standard starting point.
Handmade & Custom Goods
50% – 80%
Includes labour time at your hourly rate. Never price handmade at standard retail margins.
Instant Asset Write-Off
Up to $20,000
For eligible assets purchased in the current financial year. Check ATO eligibility criteria for your asset type.
Platform Fee Impact
6% – 20%
Typical combined impact of marketplace fees, payment processing, and listing costs on net margin.
Pricing Formula (Preview)
Retail price = COGS × markup multiplier (1.3–2.0) ÷ (1 − platform fee %)
+ Full COGS worksheet, platform fee calculator, common margin errors, and AI benchmark prompt — all inside the free download.
ATO & Compliance Note
Important
The instant asset write-off threshold (currently $20,000 for eligible assets) may allow you to deduct the full cost of production equipment in the year of purchase. Raw materials, packaging, platform fees, and shipping costs are all deductible COGS. GST registration is mandatory above $75,000 annual turnover. Track all costs in Sole.
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Frequently asked questions
Common questions
What is COGS and how do I calculate it for a handmade product?
COGS (Cost of Goods Sold) for a handmade product includes: raw materials at actual cost; labour time at your target hourly rate; packaging and labelling; a proportion of studio overhead (electricity, equipment wear) per unit; and any platform or payment fees applied to that product category. Once you have your total COGS per unit, apply your margin target (50–80% for handmade) to arrive at a price that covers all costs and delivers actual profit.
What's the difference between markup and margin?
Markup is calculated on cost (e.g. a 100% markup on $10 cost = $20 price). Margin is calculated on revenue (e.g. a 50% margin on $20 revenue = $10 profit). Retailers typically express targets as margin percentages. If your target gross margin is 60%, your markup multiplier is 2.5x (price = cost ÷ (1 − 0.60)). Using the wrong formula is one of the most common retail pricing errors for sole traders.
How do platform fees affect my retail pricing?
Platform fees compound: Etsy charges a 6.5% transaction fee plus listing fees; Shopify charges payment processing (1.7–2%); Amazon Marketplace charges 6–15% referral fees depending on category. If you price to a 50% margin before fees and your combined platform fee is 12%, your actual net margin drops to 38%. Always include the full fee stack in your COGS calculation before setting prices on any platform.
Can I claim the instant asset write-off for my production equipment?
For the current financial year, the instant asset write-off allows eligible sole traders to deduct the full cost of new business assets up to $20,000 in the year of purchase (rather than depreciating over multiple years). Eligible assets include production equipment, photography equipment, and tools used primarily for business. Check current ATO guidance and your individual eligibility with a registered tax agent before applying this to your return.
How do I handle pricing when material costs increase?
Build a material cost review into your quarterly pricing cycle — not just your annual review. When material costs increase significantly, recalculate your COGS for affected products and update prices accordingly. Notify wholesale or repeat customers of price changes with 30 days’ notice and a brief explanation. Regular, small price adjustments are far less disruptive than one large annual catch-up increase.