How to Price Items to Sell Online (New and Used)

To price items to sell online, add up your true cost per sale (the item, shipping, payment and platform fees, and a little for refunds), check what similar items actually sell for including shipping, then set a price that sits within the normal market range and still leaves you a healthy profit on every order. For used items, the key step is checking sold listings, not asking prices. Revisit your prices every few months, because costs and competitors change.

How to price items to sell online in 6 steps

1. Calculate your true cost per sale. Not just what you paid for the item. Include everything it costs to get one order to a customer (details below).
2. Research the market's total price. Look up three to five comparable listings and write down the item price plus shipping for each. Customers compare totals, not sticker prices.
3. Pick a starting price with room for profit. A common rule of thumb for new products is to price at roughly three times what the item costs you: one third covers the product, one third covers fees, shipping subsidies, refunds and marketing, and one third is profit. Treat it as a starting point, then check it against the market.
4. Decide how you will handle shipping. Either charge shipping at checkout, or offer "free shipping" and build the cost into your price. Free shipping does not make the cost disappear. It just moves it into your margin.
5. Round to a familiar price point. Prices ending in .99 or .95 are standard online and look natural to shoppers.
6. Recheck regularly. Whenever a supplier, a shipping rate, or a platform fee changes, run the numbers again. Otherwise, review every 90 days.

Work out your true cost per sale

Beginners almost always undercount this, which is how a store with steady sales ends up with no money in the bank. Your true cost per order is:

True cost = item cost + shipping you pay + payment and platform fees + packaging + refund allowance

• Item cost. What you paid, or what your supplier charges per unit.
• Shipping you pay. Easy to forget if a supplier ships for you.
• Fees. Payment processors usually take a small percentage of each sale plus a fixed amount per transaction, and marketplaces often add their own selling fees. Check the current fee page for whichever platform you use, since these change.
• Packaging. Mailers, tape, tissue, labels, thank-you cards.
• Refund allowance. Some orders will need a refund or replacement. Setting aside a small amount per unit, even 50 cents, keeps one bad order from wiping out a sale's profit.

A good gut check: after all of that, does each order leave enough profit to be worth it? Many small sellers aim for a fixed dollar amount per order, not just a percentage, because a 40% margin on a $6 item is still only a couple of dollars.

A worked example: pricing a printed t-shirt

Jordan sells funny t-shirts for nurses through a print-on-demand supplier. Each shirt costs him $9.80 to print and $4.75 for the supplier to ship. He charges customers $4.99 for shipping, estimates payment fees at about 3.5% of the order plus $0.30, and sets aside $0.50 per shirt for refunds.

Moving from $19.99 to $27.99 almost doubles his profit, while the customer pays $8 more. That difference is what pays for ads, discounts, and the occasional reprint.

Then he checks the market. Comparable nurse shirts total about $27.50 to $32 with shipping. At $32.98 he would be at the very top, so he settles on $24.99 plus shipping ($29.98 total), right in the middle of the range, and still clears about $13.58 an order. He also lists a three-shirt bundle, because the per-order costs barely rise and the bundle lifts his profit on a single order.

How to price used items to sell online

Used items follow different rules, because the market sets the price far more than your cost does.

1. Search sold listings, not active ones. On marketplaces that let you filter by sold or completed items, use that filter. Asking prices show what people hope to get. Sold prices show what buyers actually paid.
2. Match condition honestly. Compare your item to sold listings in the same condition, with the same accessories, original box, or missing parts. Flaws you disclose up front prevent returns later.
3. Subtract fees and shipping before you decide. A jacket that sells for $40 might net you much less after selling fees, shipping, and packaging. Make sure the listing is worth your time.
4. Leave room for offers. If the platform allows offers or haggling is common, price a little above your target so you can accept a reasonable discount.
5. Lower in small steps if it sits. If an item gets views but no sales after a week or two, drop the price a bit or improve the photos and description. If it gets no views at all, the title and photos are usually the problem, not the price.

For example, if a pair of used leather boots in good condition has recently sold for about $55 to $70, listing at $69 with offers allowed gives you room to accept $60 and still be within the range buyers have paid.

Common pricing mistakes to avoid

• Being the cheapest listing. It signals low quality, attracts the pickiest buyers, and leaves no cushion for mistakes. Aim to sit within the normal range, not below it.
• Copying big marketplace prices for new products. Large sellers buy in bulk at costs a small shop cannot match. Compare yourself to sellers your size.
• Forgetting fees and refunds. One replacement order on a thin margin can turn a sale into a loss.
• Deep launch discounts. A small welcome discount is fine. Big markdowns eat most of your profit and teach customers to wait for sales.
• Pricing from cost alone. Customers pay for what something is worth to them: a design that makes them laugh, a rare model, a ready-to-give gift. Price for that value, then confirm the math works.
• Never revisiting prices. Costs creep up quietly. Put a reminder in your calendar.

Common questions

How do you price things to sell quickly?

Price at or slightly below the middle of recent sold prices for the same item and condition, and make your photos and title better than the competition's. Offering free or fast shipping also helps. Avoid undercutting by a lot, since you may lose money you did not need to give away.

Should I offer free shipping or charge for it?

Both can work. Many shoppers respond well to "free shipping," so a slightly higher price with free shipping often sells better than a lower price plus a shipping charge, even when the totals match. Just be sure the shipping cost is built into your price so your profit holds.

What markup should I use for products I sell online?

Roughly three times your item cost is a common starting point for new products, with lower multipliers for expensive items and higher ones for cheap items that are costly to ship. The real test is whether the final price fits the market and still leaves a meaningful dollar profit per order.

How do I price handmade items?

Add up materials, packaging, and fees, then pay yourself for your time at an hourly rate you are happy with. Compare the result to similar handmade listings. If your price is far above them, look for ways to work faster or highlight what makes your piece different.