POD pricing
Etsy Pricing Formula for POD Sellers
POD pricing can be tricky because the provider handles production and fulfillment, but your margin still depends on base cost, shipping, marketplace fees, payment processing, and advertising.
Calculate POD marginThe POD pricing formula
A useful POD formula is provider base cost plus provider shipping plus marketplace fees plus payment processing plus ad cost plus desired profit. If you offer free shipping, the item price needs to absorb the provider shipping cost.
Why variants matter
A shirt in a larger size or a product shipped to a different country can have a different cost. Model your best-selling variants and destinations instead of assuming one cost works everywhere.
Pricing for ads
If you plan to run Etsy ads or external ads, include expected ad cost per order. A product with a small margin can become unprofitable after only a few dollars of ad spend.
Quick checklist
- Use provider base cost and shipping cost.
- Test free shipping separately.
- Add ad cost before scaling traffic.