Understanding your retail price is the first step toward building a profitable business. This is the amount you charge your customers, and it plays a major role in your overall earnings and tax obligations.
How profit is calculated
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 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 USD 22 and you charge USD 5 for shipping, your customer pays USD 27 total. If fulfillment (product + shipping + tax) costs you USD 17, your profit is USD 10.
Why the retail price matter
Setting the retail price affects more than just your profit. It can also impact:
- Printful dashboard statistics – Profit and revenue data in Statistics 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.
Still need help? Our Support Team is here for you—reach out anytime through our contact form or start a chat with us.