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How to Calculate ROI on a Resale Deal

1 min read · Profit and numbers

The formula for profit and ROI on a resale item, with a worked example.

The formula

Profit = selling price − marketplace fees − fulfilment and shipping − buy cost. ROI = profit ÷ buy cost.

Example

Buy at $30. Sells at $80. Fees and fulfilment total $22. Inbound shipping is $1. Profit is $27. ROI is 90 percent.

Do not forget

Sales tax you cannot recover
Shipping to you
Prep supplies
A returns allowance

Use real numbers

The selling price is what the item sells for today, not the store's "regular price".

General information for resellers, not financial, tax or legal advice. Marketplace fees and policies change; check the current rules before you buy.

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Keep reading

Profit and numbersSell-Through Rate Explained

Sell-through measures how fast stock turns into cash. It matters as much as margin.

Profit and numbersCash Flow for Resellers

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Profit and numbersHow to Estimate What an Item Will Sell For

A realistic resale price comes from current competing offers and price history, not the store's regular price.