How to Price K-Beauty for Retail: Margin Math for Small Shops

How should you price K-beauty products for resale? Pricing is where a lot of new resellers lose money without noticing, because the wholesale price is only the start. Here's a simple way to set retail prices that actually leave you a profit.

Start with landed cost

Your real cost per unit is your landed cost: the wholesale price plus everything it takes to get the product onto your shelf.

Landed cost = unit price + shipping + duties and fees + packaging + payment or platform fees

If your supplier ships DDP, duties are already included, which makes this simpler. If you sell online, don't forget marketplace or payment processing fees. They're often the biggest line after the product itself.

Markup vs margin

These two get mixed up all the time, and the difference is real money.

• Markup is how much you add on top of cost, as a percentage of cost
• Margin is how much of the selling price is profit, as a percentage of the selling price

A product that costs $10 and sells for $20 has a 100% markup but a 50% margin. If you want a 50% margin, the formula is price = landed cost ÷ (1 − 0.50).

Check the market price

Before you lock in a price, look at what the same product sells for elsewhere: the brand's own US site, major marketplaces and other shops. Some brands also set a minimum advertised price. If your number is far above the market, it won't sell; if it's far below, you're leaving money on the table.

Price by role, not one rule

Not every product needs the same margin.

• Hero products people search for by name (the COSRX snail essence, say) are easy to compare, so price them close to the market
• Discovery products, like newer lines and lesser-known brands, can usually carry a higher margin because shoppers have less to compare against
• Add-ons, like minis, sheet masks and patches, are impulse buys. Keep them at an easy, round price

A worked example

These numbers are only an illustration. Say a serum's landed cost comes to $12 and you want a 50% margin: $12 ÷ 0.5 = $24. If shoppers can find it elsewhere for $22, you either accept a smaller margin on this one, or bundle it with an add-on to protect the price.

Want to see wholesale prices brand by brand? Browse the brands, read our buying guide, or start with our COSRX wholesale guide.