Your retail price is what you charge your customer for a product. You decide this amount based on your brand, target market, and business goals.
Your profit is the difference between what your customer pays and what you’re charged to fulfill the order, including the product cost, shipping, and any applicable taxes. If you charge for shipping, that amount adds to your income. If you collect tax from the customer, keep in mind that you may need to remit it to the appropriate authorities.
For example, if your retail price is $22 and you charge $5 for shipping, your customer pays $27 total. If fulfillment (product + shipping + tax) costs you $17, your profit is $10.
Why does the retail price matter?
Setting the retail price affects more than just your profit. It can also impact:
- Dashboard statistics – Profit and revenue data in your Statistics tab are based on your retail price.
- Customs fees – Customs agencies often calculate fees using your declared retail price.
- Taxes – Some regions calculate sales tax or VAT based on the retail price.
So if you set a higher-than-normal price for a test order, keep in mind that it could skew these calculations.
Need help setting your prices?
Check out the free Printful Academy lesson on pricing your print-on-demand products to learn how to choose the right price for your store and goals.
If you have any questions or need assistance, please don’t hesitate to contact our Support team at support@printful.com.