What is the best way to determine profit margin on used items?

[booksnstuff_8]

If I buy used merchandise in bulk or sell my old stuff, how do I determine profit margin in relation to shipping costs and sales fees?

[maxine*j]

Why, here's a handy calculator for you:

https://www.omnicalculator.com/finance/margin

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[coastaltechsolution]

Search Google for eBay profit calculator 

[simba6]

Not always so easy as you never know what will or will not sell.  Selling you old stuff, just see what it goes for. Buying in bulk has some risk as you can be stuck with unsold items.  Those bulk lots could be dumped from other retailers that too could not sell them.

Flea-market / auction selling is the least predictable of any retail model.

[coolections]

You add the shipping cost and the fees, approx. 15%, add that to your asking price. Take the amount of the asking price - the shipping and 15% of the total and subtract that from what it cost you for the item at time of purchase.

Example: Bought widget for $10

Add $8.00 (shipping) + $2.70 (fees) = $10.70

Listed widget for $30.00 (already added shipping and fees).

$30.00-$10.00-$8.00-$2.70 = $9.30 profit

[luckythewinner]

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@booksnstuff_8 wrote:

If I buy used merchandise in bulk or sell my old stuff, how do I determine profit margin in relation to shipping costs and sales fees?

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First you have define what you mean by "profit margin".

Gross profit margin? 

Operating profit margin? 

Net profit margin?

Return on investment?

I have my own measures of how my eBay business is doing: 

• The % of the selling price I put in my pocket after all expenses
• My eBay "salary" (net profit/hours spent)

[coolections]

Just to add to the post I made and make it easier for you. If you notice the example was the item was purchased at 3x less then you are asking for it. (bought $10, listed $30). That should be the rule of thumb for every item you purchase for resell. If you do not know if you can get 3x more then do not buy it and do not list it.

[toysaver]

I use my spidey sense.  I get a tingle when I see something at the thrift store for 5 bucks that I know is worth at least 50.

[coastaltechsolution]

Buy low and sell high 😁

[murah_7455]

my question is that is it possible to sell out the use item on ebay? can you guys justify a little bit about this! site

[coastaltechsolution]

@murah_7455 

what exactly do you mean by "sell out the use item on ebay?" 

explain please 

[maxine*j]

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@murah_7455 wrote:

my question is that is it possible to sell out the use item on ebay? can you guys justify a little bit about this! site

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Well, it depends upon how much wood a woodchuck would chuck if a woodchuck could chuck wood.

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[maxine*j]

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@luckythewinner wrote:

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...  First you have define what you mean by "profit margin"...

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Exactly.  the question as posed is unanswerable.

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[gl1020]

Don't forget to add sales tax, and in California I don't pay sales tax on shipping unless it is combined with handling, or offered Free, then I would have to pay tax on shipping. And that is why I stopped offering free shipping. I'm saving money on tax as well as eBay fees as you know they charge you or I should say me 13.25% on sales tax as well as shipping fees.when i sell a $100 item w$25 shipping cost -V- $125 free shipping

I save $2.06 every time!!; check it out 😊

[kh-jean]

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread HERE if you wish to continue to discuss this topic.

Thank you for understanding.