Calculate resale profit using the full cost base, then use ROI and margin to compare opportunities.

Net profit starts with sale proceeds

Take the amount you receive from the sale, then subtract every cost directly associated with acquiring, preparing and fulfilling the item.

Include hidden acquisition costs

Inbound postage, travel, repairs, cleaning products and replacement parts all use capital.

Include selling and fulfilment costs

Platform or payment costs, packaging and outbound postage can materially reduce the apparent margin.

ROI compares profit with invested cost

Profit divided by the capital invested helps compare a £10 flip with a £200 flip on a common scale.

Margin compares profit with revenue

Profit margin tells you what share of the sale price remains as profit. It is not the same as ROI.

Forecast and realised profit are different

Record the actual sale and actual costs after the item exits so you can measure prediction error.

Related reseller resources