The shelf price belongs to the consumer transaction. The brand's wholesale revenue can be much lower, and the account brings its own costs. Marketplace performance does not establish that a retail offer works.
Consider a fictional non-electric outdoor accessory with a $39.99 consumer price. The following numbers are teaching assumptions, not Amazon fees, retailer requirements or actual quotes.
Brand revenue before costs below: Marketplace sale: $39.99. Wholesale sale: $20.00.
Landed product cost: Marketplace sale: $12.00. Wholesale sale: $12.00.
Channel selling, fulfillment and support costs: Marketplace sale: $15.00. Wholesale sale: $6.00.
Expected returns/damage cost: Marketplace sale: $2.00. Wholesale sale: $2.00.
Contribution before fixed overhead and other omitted costs: Marketplace sale: $10.99. Wholesale sale: $0.00.
The example demonstrates break-even wholesale contribution under the stated assumptions, not a universal retail loss. An additional $1.50 of costs attributable to a promotion would make that wholesale unit contribute negative $1.50 if revenue and every other assumption stayed the same.
Replace the assumptions with the offer
Use current platform fees for the actual product and configuration, actual fulfillment quotations and the proposed retailer terms. Separate advertising from other channel charges and document what the revenue line already deducts. Avoid subtracting an allowance twice.
Then stress-test promotion, returns, freight and payment timing. If the account fails, assess price, packaging, assortment or support changes before promising distribution. The correct comparison is the contribution and cash requirement of each specific offer, not the apparent spread between factory cost and MSRP.
Related guide: Wholesale pricing and retail trade math. Bring the actual price waterfall to a Retail Readiness Review.