Quick answer
A good reseller profit target has two parts: enough pounds to justify the work and enough return on capital to justify the money tied up. A £10 profit can be excellent on a fast £5 purchase and poor on a slow £150 purchase. Set both an absolute-profit floor and an ROI rule, then adjust for risk and expected time to sell.
Calculate net profit first
Start with the money you expect to receive from the sale, then subtract every cost connected to the item: purchase price, inbound postage, selling costs that apply, cleaning/repairs, packaging and outbound postage. What remains is expected net profit.
Then calculate ROI
ROI measures the profit relative to the capital you put into the deal. If an item costs £20 all-in and returns £20 net profit, the ROI is 100%. If an item costs £200 and returns the same £20, the ROI is 10%.
Use the reseller ROI calculator to compare opportunities with different purchase prices.
Absolute profit still matters
Very high ROI on tiny purchases can look impressive while producing little cash. If sourcing, cleaning, photographing, listing, packing and customer service takes an hour, you may decide that a £4 profit is not worth the process even if the percentage return is high.
Holding time changes the answer
A £30 profit realised in three days can free the same capital for another purchase. The same £30 profit after six months may be less attractive because the cash was unavailable for other opportunities. Track days held alongside profit and ROI.
Risk should increase the required return
Untested electronics, authenticity-sensitive fashion, fragile items, high return risk and products with very thin market evidence deserve a larger safety margin. If the potential downside is high, the expected profit should compensate for that risk.
Use a two-threshold rule
A practical approach is to choose a minimum net-profit floor and a minimum ROI. A purchase must pass both unless there is a deliberate reason to make an exception. The exact numbers depend on your capital, category, workload and sell-through—not on a universal percentage from somebody else's business.
Example decision table
| Deal | Capital used | Expected profit | ROI | What to consider |
|---|---|---|---|---|
| A | £10 | £10 | 100% | Strong percentage; is £10 enough for the work? |
| B | £50 | £25 | 50% | Balanced if evidence and sell-through are good. |
| C | £200 | £30 | 15% | More capital tied up for a modest return. |
Related reseller resources
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