Many sellers price online products the same way they price in a physical shop: take the cost, add a markup, done. Then, a few weeks later, they wonder why the bank balance does not match the sales figures.
Online selling has a few extra costs that are easy to forget. This guide walks through them so you can set prices that are competitive and still profitable.
Start with your true product cost
Your product cost is not just what you paid the supplier. Include everything it took to get the item ready to sell:
- Purchase price per unit.
- Transport to bring stock to your store or warehouse.
- Any import or handling costs that apply.
If you are unsure, add up a recent restock and divide by the number of units. That is your real unit cost.
Account for marketplace commission
Marketplaces earn money by taking a share of each sale. On Airsoko, listing is free and we charge a commission when you make a sale (see our Sell page). Our Commission Structure sets a flat-rate commission on gross sales, inclusive of the payment transaction fee, with a reduced rate for enterprise sellers above a published sales threshold. We give sellers 14 days' notice of any changes, so always check that page for the current figures.
Two practical points:
- Commission is calculated on gross sales, so build it into your price rather than treating it as a surprise deduction.
- Your dashboard shows the breakdown. You can view a detailed breakdown of your commissions in our seller dashboard.
Do not forget packaging
Packaging is a real cost, and on a marketplace it is also a requirement. Our Packaging Guidelines list what different categories need, for example bubble wrap for phones and fragile items, shrink wrap for TVs and large appliances, and polythene or nylon for clothing. Items that do not meet the standards may be rejected at our fulfilment centres.
Price in the box, the wrap and the tape. They add up quickly on low-value items.
Decide how delivery fits in
There are two common approaches:
- Include delivery in the product price and show it as free delivery.
- Charge delivery separately based on location.
Both work. What matters is that you choose deliberately. If you self-ship on Airsoko, you are responsible for setting sensible delivery fees. Our Sanction Policy specifically mentions failure to customise delivery fees for merchants with self-fulfilment access. If you use Airsoko Fulfillment Services, we price based on storage, pick and pack, and delivery by location.
Leave room for returns and cancellations
Even careful sellers get the occasional return. Our Returns Policy explains when shoppers can return items, including a change-of-mind window for unused items in original condition. Build a small allowance into your pricing so a return does not wipe out the profit on several sales.
Cancellations are worth avoiding entirely. Our Sanction Policy explains that orders cancelled for reasons such as "out of stock" or "price change" attract a higher commission charge, so keeping stock and prices accurate is part of pricing well.
A price check, step by step
Here is an example to show the thinking (the person and numbers are made up). Take Wanjiru, who sells handmade leather bags. She adds up her unit cost and packaging, adds the commission at the current published rate, decides whether to include delivery, and only then looks at whether the remaining margin is worth her time. If it is not, she either raises the price slightly, bundles a matching wallet, or decides the product is better sold elsewhere.
Compare, but do not race to the bottom
It is tempting to undercut every competitor. Resist it. Instead:
- Compete on value: better photos, clearer descriptions, faster shipping and good reviews.
- Use promotions strategically. We give our sellers marketing tools, including coupons and promotions. A time-limited discount is healthier than a permanently low price.
- Watch slow movers. Under our Seller SLA, inventory unsold for long periods is treated as dead stock. Discounting slow items early is better than holding them indefinitely.
A pricing checklist
- I know my true unit cost.
- I have included commission at the current published rate.
- Packaging is costed per unit.
- I have decided how delivery is handled.
- There is a small allowance for returns.
- My margin still makes the sale worthwhile.
Honest arithmetic
Good online pricing is simply honest arithmetic. Add every real cost, choose how to handle delivery, and make sure the margin left over is worth the effort. Do that and every sale grows your business instead of quietly shrinking it.
See the current rates on our Commission Structure page, then start selling on Airsoko.
