E-Commerce Break-Even Calculator

E-commerce break-even requires accounting for platform-specific costs: Break-Even Orders = Fixed Costs / (Average Order Value − Variable Cost per Order). Fixed costs: Shopify/platform fees ($29–$299/mo), warehouse rent, salaries, software tools. Variable costs per order: COGS, shipping ($5–$15), payment processing (2.9% + $0.30), marketplace fees (8–15%), packaging ($1–$3), and return handling. Example: $8,000/month fixed, $45 AOV, $22 variable cost per order. BEP = 8,000 / (45 − 22) = 348 orders/month or about 12 orders/day.

The fastest way to lower your break-even point is to increase AOV through bundles, upsells, and minimum-free-shipping thresholds. A $5 increase in AOV can reduce your break-even by 15–20%. Also review variable costs: negotiate better shipping rates at volume, switch payment processors, or reduce return rates with better product descriptions and sizing guides.