Glossary / Break-Even Price
Break-Even Price
The minimum sale price where you make $0 profit.
The break-even price is the lowest sale price at which you cover all your costs — COGS, platform fees, and shipping — without making or losing money. Anything above break-even is profit. Knowing your break-even price before you list prevents you from pricing too low and losing money on a sale. The formula varies by platform because of different fee structures.
Example
You buy a book for $3 and plan to sell on eBay. Shipping costs $5. eBay's fee formula gives a break-even of around $9.75 — price below that and you lose money.
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