Question 1

What is keystone pricing?

Accepted Answer

Keystone pricing is a retail pricing strategy where the selling price is set at exactly double (2×) the wholesale or cost price — a 100% markup. A product that costs $25 is sold for $50. It is one of the simplest and most widely used pricing methods in retail and e-commerce.

Question 2

Is keystone pricing a good strategy for Shopify stores?

Accepted Answer

Keystone pricing works well for products with low operating costs, but it may not be enough for products with high shipping, marketing, or transaction fees. After subtracting Shopify fees, shipping, and other costs, a 100% markup often yields a 20-35% net margin — acceptable for many stores but tight for high-cost categories.

Question 3

What is the difference between keystone pricing and markup?

Accepted Answer

Keystone pricing is a specific type of markup — exactly 100% (2× cost). Markup is the general term for any percentage added to cost. A 150% markup is 2.5× cost, a 200% markup is 3× cost. Keystone is simply the baseline that many retailers start from.

Question 4

When should I use more than keystone pricing?

Accepted Answer

Use a higher markup when your operating costs are high (shipping, ads, packaging), when you sell handmade or unique products with no direct competition, or when your margins after keystone pricing fall below 15-20% net. Many Shopify stores use 150-200% markup to maintain healthy margins.

Question 5

What margin does keystone pricing give you?

Accepted Answer

Keystone pricing (100% markup) gives a 50% gross margin. However, after subtracting shipping, transaction fees, and other costs, the net margin is typically 20-35% depending on your cost structure. This calculator shows you both gross and net margin in real time.

Free Keystone Pricing Calculator for Shopify

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