Break-Even Liquidation Floor & Margin Cushion Math
In high-velocity online arbitrage, calculating profitability at full retail price is only half the equation. The true risk of any inventory buy lies at its liquidation floor: the exact price point where net proceeds match your landed cost after all transaction deductions.
Break-Even Floor = (Landed COGS + Shipping + Fixed Fee) / (1 - Referral % - Ad %)
Marketplaces levy non-linear transaction cuts. A fixed order fee ($0.30 to $0.40) absorbs a massive percentage of a $12.00 sale compared to a $100.00 order. FlipPnL calculates your absolute liquidation floor and stress-tests your position with the Margin Cushion metric. If an item listed at $50.00 has a break-even of $37.50, you possess a 25.0% Margin Cushion (-$12.50 Price Drop Tolerated). Knowing your exact price decay threshold allows you to absorb algorithmic price cuts during inventory floods without bleeding capital.