Cost & Logistics
How to Use the Cross-Border Profit Architect
For TikTok Shop profit estimator users, simply select TikTok Shop as platform, enter product cost in USD, logistics cost, tariff percentage, and platform fee. The tool calculates net profit in your target currency. For Temu seller fees calculator mode, choose Temu – its fee structure is applied. Direct-to-consumer (DTC) sellers can leverage the DTC profit margin tool to include payment gateway fees.
Our international logistics cost analyzer incorporates shipping to end customer. The tariff inclusive pricing tool automatically adds import duties to your cost base. Most importantly, the backward price calculator from target margin helps you determine the optimal selling price to achieve your desired ROI, with an exchange rate buffer to protect against currency volatility.
- Forward calculation: Input selling price → get net profit and margin.
- Backward calculation: Input target margin → get recommended selling price (with buffer).
- Currency buffer: Adds a safety percentage to hedge forex risk, especially for long settlement cycles.
All calculations are performed locally in your browser. No data is sent to any server.
Key Formulas & Best Practices
- Total Cost (USD) = Product Cost + Logistics Cost + (Product Cost × Tariff%) + (Platform Fee% × Revenue in USD) + Fixed Fee (converted to USD)
- Net Profit (USD) = Revenue in USD - Total Cost
- Profit Margin = Net Profit / Revenue in USD
- Backward Price (target currency) = (Total Cost USD × (1 + Buffer%)) / (1 - Target Margin%) × Exchange Rate
For TikTok Shop sellers: typical platform fee is 5-8% plus $0.30 per order. Temu fees vary by category, usually 10-15% commission. DTC: payment gateway ~2.9% + $0.30. Adjust values based on your actual agreement.
Frequently Asked Questions for Cross-Border Sellers
Enable backward mode and set a currency buffer (e.g., 5-10%). The recommended price will include an extra cushion to maintain margins even if exchange rates move against you.
No. VAT/GST depends on destination country and your registration status. We recommend adding estimated tax to your cost or selling price separately.
Most sellers aim for 20-30% net profit margin after all fees, logistics, and tariffs. Lower margins (10-15%) may work for high-volume, low-cost items.
While designed for TikTok, Temu, and DTC, you can adapt it by selecting DTC and adjusting platform fees to match Amazon's referral and FBA fees. For dedicated Amazon FBA, see our other calculator.