How can I estimate my profit margin?

To estimate gross margin, compare the expected selling price with the total cost of getting the product ready to sell. Include the purchase price, applicable shipping or import costs, packaging, marketplace fees, payment fees, and other variable costs relevant to your business. A simple gross-margin formula is: (selling price − total product cost) ÷ selling price × 100%. This is an estimate, not a guarantee of profit; actual results depend on demand, pricing, returns, operating expenses, and sales channel.