How does the retailer margin and cost price work on Shopify Collective?

Updated on Sep 08, 2026

When you build a price list, you set a retailer margin that applies to every product on that list. The retail price minus that margin is the cost price the retailer pays you per sale. Shopify suggests a margin between 20% and 50% to give retailers enough incentive and room to promote your products, and public price lists require a minimum 5% margin.

For example, on a $100 product with a 30% margin, the retailer keeps $30 and pays you $70. If you later change the margin to 20%, the retailer would keep $20 and pay you $80, and the cost price recalculates automatically wherever the product is already imported.