Business & Sales

What Are Unit Economics?

Unit economics describes the revenue and costs associated with a single unit of a business, such as one product sold, one order, or one customer. It shows whether each unit is profitable on its own before fixed costs are considered.

Example

An order with an average value of 50, product cost of 20, shipping of 6, and platform and payment fees of 7 contributes 17 per order toward fixed costs.

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🛍️ Online Seller Fee & Profit Calculator See exactly what Etsy, eBay, or Amazon take — and what you keep. Calculate → 📊 Break-Even Point Calculator How many units do you need to sell before your side business profits? Calculate → 🏷️ Markup & Margin Calculator Find your selling price, or check your real profit margin. Calculate →

🔗 Related Terms

Contribution Margin Average Order Value (AOV) Variable Costs Marketplace Seller Fees

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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.