Marketplace Fee-Aware Promotion Calculator
Marketplace referral fees, fulfillment fees and per-order ad spend all come out before you see a dollar of profit. This calculator factors in all three before evaluating a promotion.
How it works
Formulas used
Payment/referral fee = Sale price × Referral fee% Contribution profit = Sale price − Product cost − Referral fee − Fulfillment fee − Ad spend
Worked example
$30 price, $8 cost, 15% referral fee, $4.50 fulfillment fee, $2 ad spend, 20% off promotion:
- Sale price: $30 × 0.80 = $24
- Referral fee: $24 × 0.15 = $3.60
- Contribution profit: $24 − $8 − $3.60 − $4.50 − $2 = $5.90
Marketplace fees compress promotional margin far more than a direct-to-consumer discount of the same headline size — always model them explicitly rather than assuming your normal margin cushion applies.
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Frequently asked questions
Do referral fees apply before or after a discount?
Most marketplaces charge referral/commission fees on the actual sale price the customer pays — this calculator applies the fee after the discount, which is the more common (and more conservative) assumption.
Should I include ad spend in every promotion evaluation?
If you run sponsored ads on the listing being promoted, yes — otherwise a promotion can look profitable in isolation while still losing money once acquisition cost is included.