How to Calculate Your Real Profit Margins as a Reseller
Most resellers underestimate their costs and overestimate their profits. Learn how to track every expense and calculate your true margins.
When you sell a jacket for €50 that you bought for €20, you didn't make €30 profit. Not even close.
Most resellers make the same mistake: they only count the purchase price and ignore everything else. Shipping costs, packaging materials, platform fees, your time—it all adds up fast.
The Hidden Costs Nobody Talks About
Here's what actually eats into your margins:
- Platform fees: Vinted takes 5% + €0.70 per sale. On a €50 sale, that's €3.20 gone.
- Shipping costs: Even if the buyer pays shipping, you often cover packaging materials. Mailers, tape, labels—€1-2 per item.
- Payment processing: If you use PayPal for direct sales, expect 2.5% + €0.35 per transaction.
- Returns and damages: Not every sale sticks. Budget 5-10% for items that come back or get damaged.
- Storage and overhead: If you're storing inventory at home, that space has value. If you rent storage, it's a direct cost.
The Real Calculation
Let's break down that €50 jacket sale:
- Sale price: €50.00
- Purchase cost: -€20.00
- Vinted fee (5% + €0.70): -€3.20
- Packaging: -€1.50
- Return reserve (5%): -€2.50
- Actual profit: €22.80
That's a 45.6% margin—not the 60% you thought you had.
Track Everything From Day One
The only way to know your real margins is to track every cost. Use a tool like ResellScope to log purchase prices, fees, and fulfillment costs automatically.
When you see your actual numbers, you can make better decisions: which items are worth your time, which platforms eat too much margin, and when to raise your prices.
What Good Margins Look Like
For used clothing resellers:
- 30-40% margin: Sustainable but tight. You need volume.
- 40-60% margin: Healthy range. Most successful resellers land here.
- 60%+ margin: Excellent. You're sourcing well and pricing smart.
If you're below 30%, something's wrong. Either your sourcing costs are too high, your fees are eating you alive, or you're underpricing.
Start Tracking Today
Don't wait until tax season to figure out if you're profitable. Track every purchase, every fee, every cost as it happens. Your future self will thank you.