6 min read
Mohammed Al-Anazi
Product Manager at Salla
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Selling digital cards can be profitable, but total sales do not tell you how much you actually keep. Start with the cost of the card, payment and fulfillment fees, marketing, and expected refunds, then compare what remains against the store's fixed expenses. If the margin is tight, sales may increase while profit remains slim.
Cardny's story mentioned sales exceeding SAR 330,000 over four months, while the reported monthly profit was SAR 2,500 at one stage, and SAR 4,000 in some months. These were the results of that specific store during the stated period and cannot be used to predict your outcome. Their value lies in reminding us to separate revenue from profit.
What is the difference between sales, margin, and net profit?
Sales are the amounts paid by customers. Remaining per order is the selling price minus the variable costs associated with that order. Period net profit is the total remaining from all orders, minus fixed expenses and other applicable business costs. Fees and taxes are reviewed based on your specific case, so do not copy a general figure from an example.
Let us calculate a clear hypothetical example: A card sells for SAR 100. Its supply cost is 92, payment and fulfillment fees are 2, marketing attributed to the order is 3, and the allowance for failed transactions is SAR 1. The remaining balance is SAR 2 before fixed expenses and any other obligations. If you offer a SAR 3 discount without changing costs, the remaining balance becomes negative SAR 1.
Item in the hypothetical example | SAR |
|---|---|
Selling price | 100 |
Card cost | 92 |
Payment and fulfillment fees | 2 |
Marketing attributed to the order | 3 |
Variable failure allowance | 1 |
Remaining before fixed expenses | 2 |
Do not arbitrarily set a failure allowance and treat it as a real fee; replace it with what your actual post-sale data shows. In the beginning, record actual refunds so you know whether they are rare or impacting your margin.
How do you price a card before listing it?
Start with the supplier's price and the region and denomination information. Add per-order fees and customer acquisition costs. Determine the remaining amount that makes the product viable for you, then evaluate whether the final price is reasonable for the customer you serve. If both do not align, do not try to fix the equation with the promise of "high volume"; review the supplier, the channel, or the card itself.
In the guide to adding a digital card on Salla, there is a selling price and a cost price that help track the product. However, store records do not necessarily capture your advertising spend or support time unless you log them and link them to your orders. Maintain a simple, separate record for these items.
Is ROAS enough?
If you spend SAR 200 on a campaign and generate SAR 800 in sales, the return on ad spend equals 4x. This is not a SAR 600 profit; the cost of cards, payment fees, and failed orders must also be deducted. For low-margin cards, the marketing figure may look impressive while the final net calculation is weak. Compare the channel against the remaining balance per order, not sales alone.
When does a small discount turn into a losing order?
In the previous example, SAR 2 remained from a SAR 100 card after variable costs. If you reduce the price to SAR 98, the remaining balance per order becomes zero before fixed expenses; if the price is SAR 97, you lose SAR 1 on every order under the example's assumptions. Ten orders at this price do not correct the equation; they simply repeat it ten times. Ad or supplier costs may shift with volume, but do not factor in an impact you have not agreed upon or measured.
Create a table with three potential prices for the same card: the regular price, a limited discount, and a bundle offer if supplier rights permit. Deduct supply, payment, marketing, and failure costs for each scenario, then determine the minimum price at which you can serve customers and remain viable. If the market does not accept a price that makes the order worthwhile for you, set this card aside temporarily and look for a different product or supply channel; do not inflate sales volume hoping it will hide a per-order loss.
Even if you enter the "cost price" in a Salla product, keep a sheet for costs that do not appear in that field, such as customer acquisition ads and actual refunds paid. This sheet is what makes your pricing decisions reviewable after your first sales.
A mini worksheet to try right now
Choose a single card and write down: Selling price ____, Supplier cost ____, Payment and fulfillment fees ____, Marketing cost per completed order ____, Documented variable losses or refunds ____. Result = ____. Then write down your monthly store expenses ____, and calculate how many orders with a similar margin you need to cover them assuming conditions remain unchanged. Do not turn this number into a sales forecast.
If you offer multiple card denominations, repeat the calculation for each value. A lower-priced product may have higher demand but consume more support time, and supplier pricing may vary. Revisit the equation whenever any of the numbers change. For the cash amount needed before selling, refer to the startup cost article in this series.
Once you know the remaining balance per order, set up your product and store on Salla and test real sales rather than relying on a theoretical margin.
A prompt to evaluate the idea using your numbers
Before finalizing the price
☐ Verified the card denomination, region of use, and supplier price.
☐ Entered actual per-order fees rather than an unverified, estimated average.
☐ Calculated channel costs against completed orders, not just clicks.
☐ Tested the impact of a discount or supplier price increase before advertising.
☐ Deducted fixed expenses when evaluating the monthly result.
Frequently Asked Questions
What is the profit margin for digital cards?
There is no single percentage that applies to every card and supplier. Calculate the remaining balance per order from your actual numbers, then compare it with your expenses. Another merchant's story does not dictate your margin.
Should I raise the price if the margin is low?
That can be an option, but test whether your offer remains compelling to the customer with clear product details and support. Adjusting the supplier, channel, or product might be more suitable. Do not raise the price before identifying why the remaining balance is weak.
Does offering a discount increase profit?
A discount reduces the remaining balance per order unless it measurably changes order volume or cost. Calculate its impact first, then test it on a limited scale and track the results.
Once the equation is clear, launch your digital card store on Salla. To sign up immediately, open your account directly.
Mohammed Al-Anazi
Product Manager at Salla
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