MARKETPLACEBETA / OPERATOR LIBRARY
Product profitability worksheet
Free worksheet · Version October 9, 2026 · USD example; use one currency consistently.
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Product / SKU: ____________________ Channel: ____________________
Prepared by: ____________________ Date: __________ Currency: __________
1. Build the order economics
| Per-order input | Hypothetical example | Your base case | Your downside case |
|---|---|---|---|
| Selling price | 30.00 | ||
| Product cost | 8.00 | ||
| Inbound freight and duty | 1.50 | ||
| Packaging and preparation | 0.50 | ||
| Referral / transaction fees | 4.50 | ||
| Fulfillment | 5.00 | ||
| Storage allowance | 0.20 | ||
| Expected returns loss | 1.00 | ||
| Other variable costs not counted above | 0.00 | ||
| Advertising per order | 3.00 | ||
| Total variable costs | 23.70 | ||
| Contribution after advertising | 6.30 | ||
| Contribution margin | 21% |
Use a consistent fee base. Expected returns loss = return probability × average unrecovered loss, excluding costs already counted elsewhere. Example: 5% × $20 = $1 per order.
Contribution margin = contribution ÷ selling price × 100.
Do not label contribution as net business profit.
2. Set an advertising limit
Contribution before ads: __________ Less contribution to retain: __________
Allowable advertising per acquired order: __________
ACoS ceiling = allowable ads ÷ attributed order revenue: __________
ROAS floor = attributed order revenue ÷ allowable ads: __________
Assumed orders per click: __________ CPC ceiling = allowable ads × orders per click: __________
Example: $9.30 pre-ad contribution − $4.50 retained = $4.80 ad limit. At $30 attributed revenue: 16% ACoS and 6.25 ROAS. At 10% conversion: $0.48 estimated CPC ceiling. Attribution does not prove incremental demand.
3. Account for overhead and cash
Expected monthly orders: ______ Fixed costs allocated: ______ Financing costs: ______
Monthly contribution − fixed and financing costs = pre-tax remainder: __________
Inventory cash commitment: ______ Settlement delay: ______ Cash reserve: ______
4. Record evidence and make a decision
Source documents and dates (supplier quotes, fee estimates, settled orders):
Minimum acceptable contribution: ______ Maximum inventory exposure: ______
Decision: □ Test □ Revise assumptions □ Do not proceed
Review date and what would change the decision:
Educational planning aid. Hypothetical examples are not platform fee quotes or a guarantee of profit. Verify costs, dates, and requirements using current primary sources.
Read the guide: marketplacebeta.com/guides/product-profitability