Cost per SKU Calculator
The revenue a SKU needs to justify existing.
Annual cost per SKU
$125.33
$60.17 to set one up
A SKU needs $284.85 of annual revenue just to cover the cost of existing. Long-tail catalogues are full of SKUs below that line, and the cost is invisible because it is spread across photography, admin time and shelf space rather than showing up anywhere as a SKU-level expense.
How the Cost per SKU Calculator works
Every SKU carries a setup cost and an annual cost regardless of what it sells. Long-tail catalogues are full of SKUs below the line that justifies them, and the cost is invisible because it is spread across photography, admin time and shelf space.
Also known as: SKU cost calculator · cost by product variant · per-SKU cost allocation
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price, check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
What does a SKU cost to carry?
Photography and listing setup once, then admin time, storage and the capital in its stock every year. It adds up to a real annual figure per SKU.
How much revenue does a SKU need?
Its annual carrying cost divided by contribution margin. Below that figure the SKU consumes more than it produces.
Should I cut long-tail SKUs?
Those below the line with no strategic reason to exist, yes. Some long-tail products genuinely drive traffic or complete a range, that argument should be tested rather than assumed.
How often should I review the catalogue?
Annually at minimum. SKU counts grow steadily and nobody notices until the warehouse is full of things that sell twice a year.