Costs to include when reselling
- Product purchase: what you paid per item to acquire your stock.
- Shipping and delivery: delivery to the buyer or any order-level shipping expense you pay.
- Other costs: packaging, labels, supplies, transport to collect stock, selling fees, advertising, and any other expense you want included.
Profit, margin and ROI are different
- Net profit: sales revenue minus the costs you entered.
- Profit margin: net profit as a percentage of sales revenue.
- ROI: net profit divided by the total costs entered for the order.
Keep your estimate realistic
SellMargin calculates an estimate from the numbers you provide. Taxes, refunds, returns, and costs you leave out can affect your actual result. If you pay a marketplace or payment-processing fee, add it to other costs rather than relying on preset rates that may not match your account.
Example: reselling 10 caps
Suppose you buy 10 caps at $10 each and sell each for $25. Your total revenue is $250. Product purchases cost $100, shipping costs $10 and other expenses total $20. Your total costs are $130 and estimated net profit is $120. That is a 48% profit margin and approximately 92.3% ROI on total costs. The break-even selling price is $13 per cap.
These figures are illustrative and exclude any taxes, returns or costs not entered. Try changing the numbers in the calculator to match your order.