🔝 How to set your selling price and control your margin

To set the right selling price for your product while maintaining an adequate profit margin, here is a step-by-step process:

1. Calculate your costs

• Product cost: The purchase price of the product from your supplier (e.g., AliExpress).
• Shipping costs: Include the cost of shipping the product, whether for domestic or international deliveries.
• Advertising costs: Estimate how much you spend on advertising (Facebook, Instagram, TikTok, etc.). For example, estimate the cost per click (CPC) or cost per acquisition (CPA).
• Fixed costs: Include all recurring monthly costs such as hosting your store, subscription fees for tools such as Copyfy or AutoDS, and other fixed costs.

2. Set a gross margin

Objective:Maintain a minimum gross margin of 70%.

Calculating gross margin:

Formula:

Gross margin = (Selling price - Total cost) / Selling price

Example: If the total cost (product + shipping + advertising) is $15 and you want a 70% margin, the selling price should be calculated as follows:

• Selling price = Total cost / (1 - Desired margin)
• Selling price = $15 / (1 - 0.7) = $50
• Check profitability: If you sell a product at too low a price, your margins will be squeezed and you will not be able to cover your advertising and other costs.

3. Competitor analysis

Observe competitors' prices: Use our Copyfy tool to see the best sellers and find out what prices others are charging.

• Research on AliExpress: Identify the prices offered by suppliers on AliExpress to see if you can maintain a competitive margin while remaining profitable. In the store analysis, you will have access to the best sellers and products on AliExpress with the possible margins.

Product positioning according to platforms:

• On TikTok: It is recommended that you do not offer products priced at over $50, as this platform attracts a younger audience that is less willing to spend large amounts of money.
• On Facebook or Instagram: You can offer products ranging from $30 to $90, as the audiences on these networks are more inclined to spend on products in this price range.

4. Set the price according to the chosen network

• TikTok: If you sell via TikTok, target products priced below €50 to appeal to a younger audience, who prefer affordable and trendy products.
• Facebook/Instagram: These platforms allow you to position more expensive products, between $30 and $90, as the audience is more diverse and more open to spending higher amounts on quality products.
• Example: If a product costs $20 on AliExpress (product + shipping) and you are aiming for a 70% margin, you could offer this product for around $66.67 on TikTok and between $57 and $90 on Facebook/Instagram, depending on competition and demand.

5. Balance between profit and selling price

• It is crucial to find a good balance between what you want to earn (your margin) and the price customers are willing to pay.
• Avoid lowering your prices too much so as not to compromise profitability. A minimum margin of 70% is a good target to stay competitive while ensuring your store's profitability.
• Test and adjust: If a price isn't working, adjust it based on feedback, ad performance, and sales. This will help you optimize your margins without losing your competitive edge.

Conclusion

To set your selling price and margin correctly, you need to:

1. Calculate all your costs (product, shipping, advertising, fixed costs).
2. Maintain a gross margin of at least 70%.
3. Analyze the competition to adjust your price according to the competition and platforms (TikTok, Facebook, Instagram).
4. Test and adjust your prices based on market feedback.

This process will allow you to remain competitive while maximizing your profitability.

Updated on: 05/08/2025