How to Calculate Real Resale Profit

For resellers, it is tempting to only calculate the difference between the price of an item and the price it could sell for. If an item costs £20 and sells for £35, it may seem like a £15 profit. However, resale profit is not calculated that simply.

Online marketplaces like eBay can take fees from a sale. You may also need to pay for postage, packaging and possible returns. To calculate real resale profit, you need to include every cost involved.

A simple calculation is: buy price plus postage plus fees plus packaging equals total cost. Sell price minus total cost equals profit.

Time should also be considered. If an item brings £4 profit but requires lots of photos, cleaning, testing and packing, it may not be worth buying. A lower-effort item with a smaller profit can sometimes be better than a more complicated item with a higher profit.

Some items also have a higher chance of being returned than others. Clothing may seem lower risk, but returns can still happen because of fit or condition. Electronics may have stronger margins, but they can be risky if the item cannot be tested properly.

MarginMole can make it easier to estimate profit before purchase, but it is still important to double-check resale value against recent sold listings. Resellers should always make sure profit accounts for all costs and effort before buying.