Build retail prices from landed cost, operating expenses, and your intended margin.
Calculate unit landed cost
Combine merchandise, freight, applicable import charges, payment fees, and allocated packaging. Separate one-time setup costs from recurring costs.
Account for the business
Include marketplace fees, expected returns, marketing, and overhead. Gross margin is not the same as net profit.
Test against demand
Compare your proposed price with relevant competing products and customer feedback. Revisit assumptions after real sales and return data.
Use margin and markup correctly
Markup is profit divided by cost; gross margin is profit divided by selling price. If a piece costs $20 landed and sells for $40, the markup is 100% but gross margin is 50% before other expenses. Include payment processing, packaging and expected returns in your model.
Stress-test a promotion
Calculate contribution after a discount, shipping subsidy and marketplace fee. A sale can increase revenue while reducing contribution per order. Test several plausible order values and return rates, then compare your proposed retail price with products of similar material and construction.
Before you commit to an order
Use this short decision record to keep the purchase tied to the specific products and terms you have actually checked.
- Write down the exact product specification relevant to wholesale jewelry pricing and keep the supplier’s written confirmation.
- Calculate the total cost for your actual quantity and US delivery address, not just the advertised unit price.
- Approve a representative sample and agree on how discrepancies, damage and replacements will be handled.
- Retain the quote, order confirmation and sample notes so the next order can be checked against the same standard.
Example: a decision that changes the order
A $20 landed-cost item priced at $40 has $20 gross profit before processing, packaging, marketing and returns; that is not $20 in take-home earnings.
Use the example as a question to resolve with the supplier, not as a claim about any particular merchant’s current stock or policies. Save the answer alongside the approved sample and final quote.
Calculate margin and markup correctly
Markup measures profit relative to cost; gross margin measures it relative to selling price. If a piece costs $20 landed and sells for $40, the markup is 100% but the gross margin is 50%, before other expenses. To target a 60% gross margin on a $20 landed cost, the simple price calculation is $20 ÷ (1 − 0.60) = $50. This is an illustrative planning calculation, not a recommended retail price.
Build a full contribution model
Start with landed unit cost, then estimate payment processing, marketplace commissions, packing, fulfillment, expected returns, discounts, and customer acquisition. Fixed expenses such as photography and software need to be covered across the sales volume you realistically expect. Model a full-price sale and a promotional sale separately. A high headline margin can disappear when shipping subsidies and paid advertising are added.
Check the price against the customer promise
Compare products with similar metal content, finish, design complexity, packaging, and service rather than treating every item labeled 925 as interchangeable. Record whether your price includes shipping and returns. Test a narrow range of SKUs, observe sell-through and actual costs, and update the worksheet before reordering. Avoid using an unverified competitor's advertised discount as your baseline.
Explore a wholesale supplier
Compare the catalog and confirm current specifications and order terms directly with SilverBene.
Explore SilverBene’s catalog ↗Affiliate link: we may earn a commission if you buy.