Break-even is not “when revenue equals product cost.” It is when contribution after variable fees and COGS has paid for the fixed costs you chose (apps, photography, plan fees, samples, portion of ads tested as fixed).
The formula that matters
Contribution per unit = Price − variable platform fees − product cost − variable shipping you pay
Units to break even = Fixed costs ÷ contribution per unit
If contribution is $8 and fixed costs this month are $240, you need 30 units before you are truly covering those fixed costs — not “30 units sold” in a vanity sense.
Example
Price $32 · fees ~$5 · COGS $12 · ship you pay $3 → contribution = $12
Fixed: Shopify plan slice + apps + packaging test = $180
Break-even ≈ 180 ÷ 12 = 15 units
Same product on a heavier-fee channel with $6 contribution → 30 units. Platform choice changes the finish line.
What to count as fixed vs variable
- Variable: referral %, payment %, per-order fulfillment, unit COGS, outbound shipping per order.
- Fixed (for the period): monthly software, studio rent share, minimum ad tests you will run anyway, batch photography.
Mislabeling ads as always fixed or always variable will fool you. Be consistent for the period you are planning.
Use with other tools
- Get contribution from Etsy, Amazon, or the comparator.
- Plug contribution + fixed costs into break-even.
- If units required are unrealistic for your traffic, change price, channel, or fixed spend — not your spreadsheet hopes.