Price from total cost, not COGS alone
A product can look profitable when only material cost is considered. Etsy sellers should also model platform fees, payment processing, listing costs, shipping or fulfillment, advertising and a reasonable reserve for returns or replacements.
Advertising changes the required margin
If an order is attributed to paid promotion or another advertising program, acquisition cost can materially change profit. Calculate the contribution available for advertising before deciding how aggressively to promote a product.
Use target margin to work backward
Instead of choosing a price and hoping the margin works, start with all expected costs and a target profit margin. A pricing calculator can estimate the selling price needed to preserve that margin.
Review fees when the order mix changes
International orders, shipping charges, discounts and advertising participation can change effective economics. Use current seller-account information when a fee varies by location or program.