Profit margin

Topic summary

Initial Question:
A user asks what percentage should be added to COGS (Cost of Goods Sold) to set profitable ecommerce prices.

Response & Guidance:

  • Pricing depends on product category and competitive landscape
  • A 50-60% markup is suggested as a good starting point (referenced via Shopify article)
  • More specific guidance offered if additional details about product assortment and store are provided

Status:
Discussion remains open, awaiting further information from the original poster to provide tailored recommendations.

Summarized with AI on October 29. AI used: claude-sonnet-4-5-20250929.

In ecommerce, given our COGS, which percentage of this should be added to set a profitable price ?

This depends on quite a few things, the most basic ones being the product category and the competition in that category. As this article from Shopify also highlights, a 50-60% markup is a good starting point. If you may share more about your product assortment & store, I might maybe share more insights & guidance.