No inventory, but no free lunch · The five lines between price and profit
POD pricing — base cost, shipping and fees
Retail price must cover base cost, shipping, marketplace fee, payment processing, ads and refunds.
Key facts
| Base cost | The provider's production charge per item |
|---|---|
| Shipping | Charged by the provider; may be passed to the buyer or included |
| Marketplace fee | A percentage or flat fee charged by the sales channel |
| Payment processing | A percentage plus a fixed fee on the transaction |
| Ads | Customer acquisition cost per order |
| Refunds | A reserve for defects, late delivery and buyer remorse |
| Break-even | The price at which contribution margin is zero |
| Official source | Provider price list and marketplace fee schedule |
Free shipping is a pricing choice
If you advertise free shipping, the shipping cost is already inside your retail price. The buyer sees one number, but your margin still pays the carrier. Model it as a cost, not as a discount.
For cross-border orders, include duty and import tax if you sell DDP. A delivered price that ignores them can turn a sale into a loss.
Ads can double the break-even
A product with a 35% contribution margin before ads may have a 0% margin after acquisition cost. Set a maximum cost per acquisition based on the contribution, not on a generic target.
If the product only works with organic traffic, say so. Scaling paid ads on a thin margin usually accelerates losses.
Frequently asked questions
How do I price a print-on-demand product?
Start with base cost plus shipping, add marketplace and payment fees, an ads allowance and a refund reserve, then set a price that leaves a contribution margin.
Should shipping be free?
It can be, but the cost is still yours. Include it in the retail price or charge it separately; do not model it as zero.
Ask a compliance question
Free first answer by email. Tell us the destination, the product and the channel — we will point you to the rule and the official source. No obligation, no sales sequence.