Pricing Strategy

Pricing Strategy

Example of cost breakdown and pricing

Here is an example of a pricing strategy taking into account the platform fees and shipping costs.

  • Product: Handmade scarf 
  • Cost to produce: 2,000 yen 
  • Desired profit margin: 30% 
  • Average shipping cost: 500 yen 
  • Gift wrapping cost: 200 yen (materials + labor)
  • Sales tax: 10%

Approximate Breakdown of the 4,080 yen selling price with gift wrapping:

  • Cost to produce: 2,000 yen
  • Profit: 600 yen
  • Sales tax: 280 yen (260 on product + 20 on gift wrap)
  • Platform fees: 487 yen (454 + 33 for gift wrap)
  • Shipping: 500 yen
  • Gift wrapping cost: 200 yen
  • Additional margin: 13 yen

Note on sales tax: The 10% sales tax is included in the final price and will be collected by the platform to be remitted to the tax authorities. This tax is calculated on the base price plus the gift wrapping fee (if applicable) before other fees are added.

Check our online calculator to easily derive your price.

Strategies for gift wrapping

  1. Offer gift wrapping as an optional add-on service during checkout.
  2. Create attractive visuals of the gift-wrapped product to encourage uptake.
  3. Consider seasonal gift wrapping options (e.g., special wrapping for holidays).
  4. Bundle gift wrapping with other add-ons (e.g., gift card, express shipping) for a premium "gift package" option.
  5. Highlight the convenience of direct gift shipping to recipients.

Free shipping is a powerful tool to increase your conversion rates and overall sales

  • Reduced Cart Abandonment: Many customers abandon their carts when they see unexpected shipping costs. Free shipping eliminates this barrier.
  • Perceived Value: Customers feel they're getting a better deal, even if the product price is slightly higher to offset shipping costs.
  • Competitive Edge: In a marketplace where others charge for shipping, offering it for free can make your products stand out.
  • Increased Average Order Value: Customers often add more items to reach free shipping thresholds, boosting your sales.
  • Improved Customer Satisfaction: Free shipping enhances the overall shopping experience, leading to higher customer loyalty and repeat purchases.
  • Simplified Decision-Making: With shipping costs included, customers can more easily compare prices across different sellers.

Consider offering free shipping on orders above a certain value to encourage larger purchases while managing your costs. By strategically implementing free shipping, you can significantly improve your conversion rates and grow your business on our platform.


    • Vendor Portal Instructions: More
    • Store Fees, Plans, and Discount: More
    • Pricing Strategy: More
    • Price Calculator: check your price
    • Tips of managing your online sales: More
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