How to Calculate a Shapewear Selling Price in the UK

A profitable shapewear selling price starts with more than the factory quotation. For a UK DTC brand, retailer or distributor, calculate the full cost of making one unit saleable, then account for VAT, fulfilment, payment fees, returns, discounts, marketplace commissions and customer acquisition.

Use this core formula:

Selling price = total variable cost per sale ÷ target contribution cost percentage

In practice, it is usually clearer to work backwards:

1. Establish the EXW or FOB price.
2. Convert it into a complete landed cost.
3. Add variable selling and fulfilment costs.
4. Model VAT and channel deductions.
5. Allow for returns, discounts, defects and marketing.
6. Check whether the resulting price works for DTC, wholesale or both.

Before requesting a quotation, prepare the product type, target market, expected quantity, size and colour range, materials or reference samples, packaging requirements, delivery destination and preferred delivery window. A supplier can only price the project reliably when these commercial assumptions are defined.

Quick Answer: How do you calculate a shapewear selling price?

Start with the unit economics rather than choosing a retail price by applying a simple markup to the garment cost.

A useful model is:

Net revenue per order
= customer selling price excluding VAT
− discounts
− refunds or expected return value
− payment fees
− marketplace fees

Contribution per order
= net revenue
− landed product cost
− packaging
− fulfilment and delivery
− return handling
− expected quality loss
− customer acquisition cost

Then calculate:

Contribution margin % = contribution per order ÷ net revenue × 100

For a procurement decision, build at least three scenarios:

• DTC: sold through your own website, with fulfilment, payment and marketing costs.
• Marketplace: sold through a platform, with commission and possible fulfilment or service fees.
• Wholesale: sold to a retailer or distributor at a trade price, leaving enough margin for the next channel participant.

Do not treat a target margin as a substitute for a cost model. A quoted factory price may exclude freight, import charges, UK delivery, packaging, returns and promotional activity.

EXW-/FOB price into a complete landed cost

EXW and FOB are commercial starting points, not necessarily the cost of putting a unit into UK stock.

An EXW quotation generally requires the buyer to arrange collection from the supplier’s premises and the onward transport. An FOB quotation normally includes delivery to the agreed port and loading on board, but the exact scope and named place must still be confirmed. The quotation should state the applicable Incoterm and location rather than simply saying “FOB”.

A practical landed-cost formula is:

Landed cost per sellable unit =

• EXW or FOB unit price
• origin transport and export handling
• international freight
• cargo insurance, where used
• customs duty
• customs clearance and destination handling
• import VAT, if it is a real cost rather than recoverable input tax
• UK inbound transport
• inspection, testing or rework allocated per unit
• primary packaging required before sale

For a VAT-registered business, import VAT may be treated differently from a permanent product cost, depending on the business’s accounting position and the import arrangement. It can still affect cash flow. Confirm the treatment with your accountant or customs adviser.

Avoid dividing total project costs only by the order quantity if some units are samples, replacements, defective units or retained for content. Use:

Cost per sellable unit = total allocated cost ÷ expected sellable units

For more detail on the factors that move manufacturing cost, see this guide to shapewear manufacturing cost drivers.

Information to include in a supplier quotation request

The supplier should return the unit price, tooling or development charges if applicable, packaging assumptions, production quantity basis, delivery term, quotation validity and any exclusions. Freight, duty, sample costs and payment terms may need separate confirmation.

Account for duty, freight, packaging and fulfilment

Import and fulfilment costs often determine whether a product works commercially. They should be modelled before approving the purchase order.

Freight and customs

Freight is influenced by shipment mode, volume, carton dimensions, seasonality, destination and the agreed transport term. Air and sea freight should not be compared only by quoted transport price. Consider speed, working capital, stock-out risk and the cost of holding safety stock.

Customs duty depends on the product classification, customs value, origin and the applicable UK tariff treatment. The importer or its customs agent should confirm the commodity code and current requirements. Do not build a business case around an assumed duty rate without checking the specific garment construction and import route.

Also identify who is responsible for:

• import declarations;
• payment of duty and import VAT;
• customs clearance;
• delivery to the UK warehouse;
• correcting classification or documentation errors;
• any storage or demurrage charges.

These responsibilities vary with the agreed delivery term and logistics provider.

Fulfilment

For DTC, model fulfilment as a cost per order rather than only a cost per unit. Include:

• pick and pack;
• mailer, box or other dispatch packaging;
• inserts and promotional materials;
• carrier charge;
• delivery surcharge for remote or oversized parcels, where relevant;
• storage or account fees;
• return receipt and reprocessing;
• relabelling or repacking of resalable goods.

The cost per unit changes when customers buy more than one garment per order. This is why average order value and bundle mix matter. A two-piece order may have one dispatch fee but two product costs.

For a review of operational support options, see the ecommerce solutions for growing brands.

Deduct VAT, payment fees and marketplace costs

UK consumer prices are normally presented as VAT-inclusive where VAT applies. Your margin calculation should therefore convert the displayed price into net revenue before comparing it with costs.

A simplified calculation is:

Net selling price = VAT-inclusive selling price ÷ (1 + applicable VAT rate)

The applicable tax treatment depends on the business, product and transaction. Confirm the correct treatment with HM Revenue & Customs guidance or a tax adviser rather than assuming every sale has the same rate.

Payment fees may include:

• a percentage of the transaction value;
• a fixed transaction charge;
• currency conversion;
• chargeback fees;
• payment gateway or platform charges.

Apply the fee to the amount on which the provider actually calculates its charge. Some providers calculate a percentage on the gross customer payment, while others have different rules for refunds or delivery charges.

Marketplace costs may include:

• selling commission;
• payment processing;
• fulfilment or storage;
• listing or subscription fees;
• advertising within the platform;
• returns administration;
• currency or cross-border charges.

Use a separate profit-and-loss view for each channel. A price that produces an acceptable DTC contribution may be too low for a marketplace, while a wholesale price may not leave enough room for paid acquisition.

Build returns, discounts and defects into the percentages

Shapewear is sensitive to fit, comfort, support level and customer expectations. Returns should therefore be treated as a planned commercial variable, not an exceptional event.

Use a return allowance based on your own channel data when available. For a new product, model a range rather than inventing one precise forecast.

Expected return cost per order = return rate × average cost of a returned order

The average cost may include:

• return postage paid by the business;
• inspection and handling;
• repacking;
• payment or marketplace refund deductions;
• markdown or clearance loss if the item cannot be sold at full price;
• customer service time;
• replacement delivery.

Separate returned and resalable units from returned and unsaleable units. A returned item is not automatically a full loss, but it may no longer be available for sale as new depending on its condition and your operating policy.

Also model:

• introductory discounts;
• voucher codes;
• bundle discounts;
• retailer markdown support;
• damaged or missing units;
• quality rejects;
• samples and influencer seeding;
• stock written off at the end of a season.

A simple allowance can be applied as a percentage of units or revenue, but the model should show the underlying assumption so that it can be changed later.

Distinguish DTC margin, wholesale margin and retailer mark-up

The same recommended retail price can support very different economics depending on who sells the garment.

DTC

For a DTC sale, the brand receives the customer price but pays for acquisition, fulfilment, payment processing, customer service and returns.

DTC contribution = net customer revenue − all variable order costs

This is the most complete view of whether a product can support paid growth.

Wholesale

In wholesale, the brand sells to a retailer or distributor at a trade price. The buyer needs sufficient margin to cover its own:

• warehousing;
• staff and selling costs;
• promotions;
• payment terms;
• markdowns;
• returns or unsold inventory;
• profit requirement.

A wholesale model should show the trade price excluding VAT and the recommended retail price including or excluding VAT as appropriate for the audience. Make the basis explicit.

Margin is not the same as mark-up

If a product costs £20 and sells for £40, the mark-up is 100%, but the gross margin is 50%:

Margin = (selling price − cost) ÷ selling price

Mark-up = (selling price − cost) ÷ cost

Retail buyers and suppliers sometimes use these terms differently, so write the formula into the commercial model. Do not approve a price based on an unexplained “50% margin” or “50% mark-up”.

A channel comparison can be structured as follows:

Develop a Good-Better-Best and bundle price architecture

A price architecture helps customers compare products while giving the business more than one route to improve average order value.

A possible structure is:

• Good: an accessible entry product with a focused specification;
• Better: the core product with stronger construction, finish or packaging;
• Best: the highest-value option with additional features or a premium presentation.

The differences must be clear to the buyer. Do not create artificial tiers that are difficult to explain or that use the same product with only a higher price.

For bundles, calculate the economics at order level:

Bundle contribution = bundle revenue excluding VAT − all product and order-level costs

Check whether the discount is funded by a genuine saving, such as one pick-and-pack operation, or whether it simply removes margin. Consider:

• one-unit versus multi-unit fulfilment;
• mixed sizes or colours;
• free delivery thresholds;
• bundle-specific packaging;
• return behaviour when only part of a bundle is returned;
• whether a discount applies before or after VAT.

A bundle can improve contribution per order even when contribution per unit falls, but only if the additional units are genuinely incremental and do not create excessive returns or stock imbalance.

Include acquisition costs and break-even ROAS

Marketing can make a product appear profitable at gross-margin level while losing money after acquisition.

Contribution before advertising = net revenue − variable costs excluding CAC

The maximum customer acquisition cost is the contribution before advertising if the objective is break-even on the first order.

Break-even CAC = contribution before advertising

For advertising platforms, use a consistent revenue basis:

Break-even ROAS = attributable revenue ÷ allowable advertising spend

If the model uses revenue excluding VAT, calculate ROAS using revenue excluding VAT. If platform reporting uses another basis, reconcile the two rather than comparing them directly.

For example, a brand may have:

• net revenue per order;
• landed product cost;
• fulfilment and payment costs;
• an allowance for returns and discounts;
• contribution before advertising.

The remaining contribution is the maximum acquisition cost for a first-order break-even model. If the brand expects repeat purchases, it can model a higher allowable CAC, but that assumption should be supported by actual retention data rather than treated as guaranteed.

Also separate:

• prospecting CAC;
• retargeting cost;
• creator or affiliate commission;
• marketplace advertising;
• content production;
• agency or platform fees.

A blended marketing percentage can hide an unprofitable acquisition source.

Create sensitivity calculations for quantity, returns and advertising

A single forecast can create false confidence. Use a sensitivity table that changes the assumptions most likely to affect the result.

At minimum, test:

• lower and higher order quantity;
• different freight or duty outcomes;
• return-rate ranges;
• discount levels;
• fulfilment charges;
• paid acquisition cost;
• sell-through or clearance assumptions.

A simple scenario table might look like this:

Do not insert arbitrary market prices just to complete the table. Use the supplier quotation, freight quotes, channel contracts and internal test data where available. For unknowns, show the value as a variable and identify the document or test needed to confirm it.

Approval gate before placing an order

A procurement approval should normally require:

• approved sample and measurement specification;
• confirmed size and colour allocation;
• written packaging and branding requirements;
• clear Incoterm and named location;
• freight and customs assumptions;
• confirmed importer and tax treatment;
• landed-cost calculation using sellable units;
• channel-specific margin model;
• return and discount assumptions;
• sensitivity review;
• agreed quality inspection and acceptance criteria.

If one of these is missing, the decision may still proceed, but it should be recorded as an open commercial risk rather than hidden inside the unit price.

For planning the interaction between quantity, styles, colours and sizes, use this guide to shapewear MOQ planning. The minimum order quantity, allocation and packaging configuration can materially change the unit economics.

FAQ: shapewear selling price and margin

Should I base the retail price on EXW or FOB cost?

No. EXW or FOB is only the starting point. Use a landed cost that includes the expenses required to place a sellable unit into your chosen UK stock location.

Should VAT be included in my margin calculation?

Calculate customer-facing prices on a VAT-inclusive basis where required, then remove the applicable VAT from revenue before assessing commercial margin. The correct treatment depends on your business and transaction, so confirm it with a tax adviser or current HMRC guidance.

What is a reasonable shapewear margin?

There is no universal margin that works for every product or channel. The required margin depends on landed cost, returns, fulfilment, discounting, marketing, wholesale structure, payment terms and planned growth. Calculate the minimum contribution needed for the actual business model.

How should I price for wholesale?

Start with the trade price excluding VAT and work backwards from the retailer or distributor’s required economics. Check whether your price leaves room for retail margin, promotions, payment terms and markdowns while preserving your own contribution.

Should returns be treated as a percentage of sales?

They can be modelled as a percentage for forecasting, but the calculation should distinguish between resalable returns, handling costs and units sold at a discount or written off. Use actual channel data once it is available.

Does a lower MOQ always reduce the selling price?

Not necessarily. A larger order may improve unit pricing, but it can increase inventory risk, cash tied up in stock and the number of unsold sizes or colours. Compare unit cost with sell-through and working-capital requirements.

What should a supplier confirm before I approve the quotation?

Request a written breakdown of the product price, quantity basis, size and colour allocation, packaging, branding, sample assumptions, Incoterm, named delivery point, exclusions and any development or tooling charges. Ask which items are fixed and which depend on final specifications.

For a project reviewed with S-SHAPER UK, use the quotation to separate garment cost from packaging, development, freight and other landed-cost items. The model, colour, size, packaging and commercial allocation remain project-specific and should be confirmed before you set the selling price.

For a project-specific review, prepare the product type, target UK market, planned quantity, size range, materials or reference garments, packaging requirements and delivery window. Those inputs provide a practical basis for checking the landed cost, channel margin and quotation assumptions before making a purchasing decision.