How do I price baked goods when a marketplace takes commission?

Identify the base for every fee

Check whether commission applies to item price, delivery, collected tax or a total that includes all three. The calculator assumes both entered percentages apply to the same full order price, excluding collected tax. If that is not your contract, calculate the fee lines separately instead of copying a headline rate.

Work through a complete arithmetic example

Suppose entered order cost is $40, target margin is 25%, processing is 3% plus $0.30 and a separate platform commission is 10%. Price = $40.30 / (1 - 0.25 - 0.03 - 0.10) = $65.00. The combined variable fees are $8.45, the fixed charge is $0.30 and the amount left after entered costs and fees is $16.25: 25% of $65. These invented rates are not a marketplace offer.

Work a different-base example separately

Suppose items are $100 and delivery is $20. If a hypothetical agreement charges 10% commission on items only, plus 3% processing on the full $120 and one $0.30 charge, fees total $10 + $3.60 + $0.30 = $13.90. Entering a combined 13% on $120 would give $15.90, overstating fees by $2. This calculator cannot model two different percentage bases: calculate those lines separately or use the agreement-specific statement. These invented terms are not a marketplace tariff.

Avoid paying the same fee twice on the worksheet

Some platforms include processing in their commission. Do not add a second processing rate unless the agreement lists it separately. Likewise, keep the fees modeled here out of your order-cost input. Listing charges, delivery subsidies and monthly subscriptions need their own consistent allocation if they are not included.

Compare a direct order fairly

At the same $40 cost, 25% margin and 3% plus $0.30 processing, a direct-order starting quote is $55.98. The platform example needs $65.00. This is a cost comparison, not proof that direct sales are better: advertising, fulfillment, customer acquisition and different order volumes may change the decision.

Check the real statement after a sale

Compare modeled charges with the platform statement, including refunds, promotions, currency conversion and charges on delivery or tax. If the fee structure changes by tier, item category or transaction, use the applicable schedule. The worksheet does not infer these terms or determine whether buyers will accept the price.

Continue with a related question

• Does taking a cake deposit mean paying processing fees twice?
• How should I price a wholesale bakery order?

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