# Profit margin

**URL:** <https://community.shopify.com/t/profit-margin/406794>\
**Category:** Prisyncama\
**Created:** [April 7, 2025, 1:35am UTC](https://community.shopify.com/t/profit-margin/406794 "2025-04-07T01:35:51Z")\
**Posts on this page:** 2\
**Page:** 1

## AI-generated 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.

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**Author:** ![Katy5](https://avatars.discourse-cdn.com/v4/letter/k/7ab992/32.png) [@Katy5](https://community.shopify.com/u/Katy5)\
**Post date:** [April 7, 2025, 1:35am UTC](https://community.shopify.com/t/profit-margin/406794/1 "2025-04-07T01:35:51Z")

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

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**Author:** ![Prisync](https://yyz1.discourse-cdn.com/shopifyforum/user_avatar/community.shopify.com/prisync/32/352194_2.png) [@Prisync](https://community.shopify.com/u/Prisync)\
**Post date:** [April 8, 2025, 3:14pm UTC](https://community.shopify.com/t/profit-margin/406794/2 "2025-04-08T15:14:04Z")

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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](https://www.shopify.com/blog/markup-vs-margin-whats-the-difference) 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.
