A listing can look profitable until the shipping label, marketplace fee, packing materials, and purchase cost all show up. The number worth recording is net profit for the completed sale—not simply the difference between what you paid and the item price.
Start with what the customer pays
For this example, imagine a remote control sells for $25 and the buyer pays $5 for shipping. Your modeled gross proceeds are $30. Buyer-paid shipping belongs on the revenue side; later, record the actual cost of the label separately. If you offer free shipping, the buyer shipping amount is $0 and the postage is still an expense.
List every variable cost
- Acquisition cost: the item's share of your delivered sourcing price, including inbound freight where appropriate.
- Marketplace fees: use the rate and fixed order fee for the actual category, selling program and transaction.
- Promoted listing fees: only include them if applicable; pay attention to the base the platform uses.
- Actual outbound postage: use the shipping label charged, not the weight estimate shown while drafting a listing.
- Packing supplies: bubble mailers, boxes, labels and protective material.
- Other expenses: repair parts, cleaning supplies, refunds, paid storage or other item-specific costs as appropriate.
Work through one illustrative sale
Item $25 + buyer shipping $5 = $30 collected. Item cost $4, marketplace fee modeled at 13% of $30 ($3.90), fixed order fee $0.40, postage $4.75, packaging $0.40, and $0 in extra costs. Net profit = $30 − $4 − $3.90 − $0.40 − $4.75 − $0.40 = $16.55.
What should a bulk-lot buyer do?
Allocate total delivered lot cost across sellable units, but don't assume every item will sell. If a 20-piece lot costs $40 delivered and only 16 pieces turn out saleable, using $2.50 per saleable item is a more conservative starting point than assigning $2 across all 20. Record unsold inventory and any discarded units separately to avoid overstating realized profit.
Compare more than the profit number
Track how long each item takes to sell, how much storage it occupies, and how reliably it can be tested. A modest profit on a small, easy-to-ship item may be attractive for a small operation, but cash tied up for months can change the practical result.
Calculate a prospective flip
Use the free Reseller Profit Calculator before buying or listing. For ongoing inventory and order logs, browse the MintedTools reseller spreadsheet collection.