A store can generate revenue and still lose money when advertising costs, fees and shipping are overlooked.
Profit per order
Profit = selling price − product − shipping − other costs − ads − fees
Profit margin is profit divided by selling price. Use prices before taxes for consistent estimates; check the tax rules that apply to you.
Margin is not markup
If an item costs $10 and sells for $15, markup is 50% but profit margin is 33.3%.
To calculate a target selling price, divide your costs by 1 − fee% − target margin%, including fixed transaction fees in your costs first.
Break-even
Divide monthly fixed costs by the contribution per order and round up.
This estimates the orders needed to cover fixed costs. It does not predict traffic or sales.