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Target COGS by route to market.

Start with the retail price you think the market will bear, then see what the product can afford to cost across direct-to-consumer, marketplace, and retailer routes once the hidden cost stack is included.

Inputs

This tool shows the maximum COGS each route can support while still leaving the target operating margin in place.

Results

Quick answer

The best route is the one that leaves enough money for both COGS and margin after hidden selling costs.

Target COGS = retained price after VAT and route deductions - hidden selling costs - required margin

Retailer routes usually create the hardest COGS ceiling because wholesale deductions remove the largest share of the RRP before logistics and account costs are counted.

Why route to market changes what your product can cost

The same product can carry very different economics depending on whether it is sold direct, through a marketplace, or through retail. The retail price may stay the same while the amount left for COGS changes dramatically.

  • DTC keeps more of the selling price, but you absorb warehousing, packaging, delivery, site fees, and customer acquisition.
  • Marketplace sales can look simpler, but marketplace fees and fulfilment extras can erode the margin quickly.
  • Retail can unlock scale, but wholesale pricing means the product usually needs to be designed to a much harder COGS target.

Example output

A product that feels healthy at a 180 GBP RRP might afford a very different COGS ceiling depending on whether the sale is direct, through Amazon or Etsy, or through a retailer taking a standard margin.

How this calculator works

Early-stage estimate, not final quotation

This calculator turns the assumptions you enter into an early engineering or commercial estimate. It is most useful for comparing options, surfacing trade-offs, and deciding what needs deeper validation next.

Source and Attribution

This engineering calculator and supporting analysis were created by Orion Design. Use the result as an early decision aid, then confirm the numbers with suppliers, manufacturing partners, and project-specific data.