Sourcing workflow
Work through the sourcing analysis
- 01
Build a landed unit cost
Include manufacturing or supplier cost, freight, preparation, and other costs needed to move one sellable unit into your fulfillment operation.
- 02
Estimate marketplace and fulfillment costs
Select the marketplace and fulfillment method you plan to use, then verify category, dimensions, and weight assumptions.
- 03
Model advertising and promotions
Enter expected ad cost per unit or examine ACOS and TACOS scenarios. Include discounts if they are part of the launch plan.
- 04
Check break-even and target return
Review the break-even selling price and maximum buy price at your target ROI, then compare these values with supplier quotes.
- 05
Account for uncertainty
Use conservative price, ad, and return assumptions and plan for inventory hold time. A launch estimate is not a demand forecast.
Unit economics do not replace product research
The calculator can organize costs and show how assumptions affect profit. It cannot validate customer demand, product differentiation, regulatory requirements, intellectual property, or supplier quality.
Treat the result as one input to a broader product and launch review.
Private label profit checklist
Include samples, branding, packaging, certifications, and freight, not only the factory price.
Plan advertising as a real cost line, and stress-test the result with a lower price and higher return rate.
Separate launch cash from ongoing unit economics
Sort costs into three buckets: one-time setup (such as samples, tooling, testing, or photography), per-unit landed cost (manufacturing, packaging, freight, and preparation), and ongoing selling costs (marketplace fees, fulfillment, storage, advertising, and returns). This prevents a unit margin from hiding the cash needed to launch.
A seller-entered launch budget can be framed as initial order cash plus one-time setup costs. It is not a sales forecast: validate demand, compliance, intellectual-property risk, product quality, and supplier terms separately before placing a production order.
- Get written quotes for sample, tooling, packaging, testing, and production quantities.
- Model advertising and promotion assumptions separately from organic sales.
- Check how long the order may tie up cash under a conservative seller-entered sales range.
Common questions
Frequently asked questions
Should launch advertising be included in private label profit?
Include an explicit ad-cost assumption or review PPC scenarios when ads are expected to be part of the launch. Results depend on the assumptions entered.
Does the calculator estimate market demand?
No. It estimates unit economics from listing data and seller-provided costs; demand and sales forecasts require separate research.
How do I check private label profitability?
Estimate landed cost, marketplace fees, advertising, and returns, then test whether the product still meets your target after a launch period of heavier ad spend.
Ready to check a listing?
Put the assumptions to work.
Bring the visible listing facts and your own costs into a product audit before you commit to inventory.