Margin floor
Pricing Models
Margin floor is the minimum acceptable margin threshold below which a resale or buyback price will not automatically move, set to protect unit economics after platform fees, processing costs, and return risk.
Margin floor is a fundamental parameter in automated repricing systems. Without it, pure price-matching logic can drive prices below cost in competitive markets. In recommerce, margin floor calculations must account for platform commission, return rate assumptions, and processing cost per unit. Operators typically set margin floors by category and condition tier rather than as a single global rule, since cost structures vary significantly across device types and grades.