Buyers lose money on "cheap" quotes by comparing factory prices without the downstream stack. This calculator returns your factory price ceiling: the highest ex-works unit cost that still clears your margin after fees, freight-per-unit, duty and a returns allowance. A quote above the ceiling kills the SKU before it ships — negotiate, re-spec, or walk.
1 · Your retail economics
2 · Landed-cost stack
| Marketplace fee (referral) | — |
| Fulfillment fee | — |
| Freight per unit (your packing density) | — |
| Duty skeleton per unit | — |
| Returns allowance per unit | — |
| Factory price ceiling (ex-works) | — |
| Break-even factory price (0% margin) | — |
Uses duty-on-goods-value skeleton (see the HS-code guide). VAT/GST registration mechanics vary by country — the ceiling is pre-tax. Verify live fee grids each quarter; Amazon referral rates moved 2024-2026 across categories.
How the Ceiling Is Computed
The ceiling inverts a standard contribution-margin equation. Start from retail, subtract refund-allowance drag, subtract marketplace referral and per-unit fulfillment, subtract the per-unit freight share (freight all-in per CBM ÷ packing density), and reserve your target margin on retail — what remains is the most you can pay ex-works, and duty rides on that number. The three decisions that move the ceiling most: packing density (bulky goods eat margin invisibly), the returns allowance (underestimating it is the classic new-seller mistake), and margin discipline (what you type here should match your P&L, not your hope).
Where MOQ enters: factory quotes are tiered, so run the ceiling against the price band your first order quantity actually reaches — our MOQ guide covers how tiers collapse as quantity rises. Then cross the result with the shipment calculator to validate the freight side before signing a PI.
2026 Fee & Margin Benchmarks (Preloaded Values)
| Vector | 2026 benchmark | Notes |
|---|---|---|
| Amazon referral fee (general) | 8-16% | Category-dependent; Toys 8%, Beauty 8-20% |
| FBA fulfillment (standard, <1 lb) | $3.50-5.00 | Check current-year rate card per size tier |
| Returns allowance | 2-5% revenue | Apparel 6-10%; QC-inspected goods trend lower |
| LCL all-in freight | $55-80/CBM | Destination fees included — see FCL vs LCL |
| Target margin (successful import brands) | 25-40% after all-in | Below ~20% a single FX or freight spike wipes the SKU |
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Frequently Asked Questions
What is a factory price ceiling and how is it calculated?
It is the maximum ex-factory unit cost you can pay after subtracting every downstream cost from your retail price: marketplace commission and fulfillment fees, inbound freight per unit, duty, payment/agent costs, returns allowance and your target margin. If a factory quotes above this ceiling, the SKU loses money even if it looks cheap per carton.
How much should I allow for returns and defects?
Most consumer-goods sellers budget 2-5% of revenue as a returns/refund allowance, with electronics and apparel at the high end. If you pre-shipment inspect (recommended), plan the lower end — the inspection costs $90-150 but pulls the risk down first.
Does the MOQ change the factory price I should expect?
Yes — unit prices at 1,000 pcs often sit 10-20% under the 300-pc tier for the same SKU. Use your realistic first-order quantity in this calculator, not your year-two volume, or you will approve a factory whose MOQ tier you cannot actually reach yet.