1. Include the stock cost
Record what you paid for the item and any directly related sourcing cost you want included in your estimate.
RESELLER BASICS · PRACTICAL GUIDE
How to calculate reselling profit.
Revenue is not the same as profit. To see whether an item is worth buying or selling, account for the costs that come out of the sale—not just the price the buyer pays.
THE BASIC FORMULA
Start with what you actually keep
A simple estimate is: selling price − item cost − selling fees − postage you pay − packaging − other direct costs = estimated profit. Use the same currency throughout and enter costs consistently. If a marketplace or buyer pays a delivery charge separately, account for it according to how that transaction is recorded.
2. Deduct selling costs
Include applicable marketplace or payment fees, postage, packaging and any other costs tied to the sale.
3. Check your margin
Compare estimated profit with the selling price. A percentage margin helps compare items with different prices.
EXAMPLE
Why small costs matter
Imagine an item sells for £40. You paid £18 for the stock, £4 in fees, £3 postage and £1 for packaging. Your estimated profit is £14 before any other overheads or tax. If you forget postage and fees, you would overestimate profit by £7.
This is an illustrative example, not a prediction. Your actual fees and costs will depend on the marketplace, transaction and how you fulfil the order.
BUILD A REPEATABLE ROUTINE
Track every sale the same way
Save the stock cost when you buy an item
Use the correct fees for the platform and sale
Record postage and packaging consistently
Keep receipts and records for your bookkeeping
Review results over time, not just one good sale
A calculator is useful for estimates before you buy or list. For ongoing records, use a consistent stock and expense tracking process. This guide is general information, not tax or accounting advice.
PUT IT INTO PRACTICE
Estimate profit before you commit.
Use the free calculator, or keep your records organised in the full reseller workspace.