How is the required selling price calculated?
The calculator works backward from your desired profit to determine what price you must charge. It accounts for all costs — item cost, shipping, platform fees, and payment processing fees — then adds your target profit on top. The formula adjusts for whether your target is a fixed dollar profit, a margin percentage, or a markup percentage. See also our calculate Commission.
What is the difference between Profit $, Margin %, and Markup %?
Profit $ is a fixed dollar amount you want to earn per sale. Margin % is the profit as a percentage of the final selling price (e.g. 30% margin means 30 cents of every dollar is profit). Markup % is the profit as a percentage of your total cost (e.g. 50% markup means you're adding half of your costs on top to arrive at the selling price).
What platform fees does this calculator include?
This calculator includes pre-set fees for popular marketplaces including eBay (13.25%), Poshmark (20%), Mercari (10%), Etsy (6.5%), Amazon (15%), Depop (10%), Whatnot (9.5%), Grailed (9%), OfferUp (12.9%), and Facebook Marketplace (0%). You can also enter a custom fee percentage for any other platform.
Should I include shipping costs in my selling price calculations?
Yes, always include shipping costs you pay as a seller. If you offer free shipping to buyers, the full shipping cost comes out of your pocket and reduces your profit. If you charge buyers for shipping, enter that amount in the 'Shipping Charged to Buyer' field — it offsets your shipping expense and reduces the selling price needed.
What is a good profit margin for reselling on marketplaces?
Most resellers aim for at least a 20–30% profit margin to account for unexpected costs, returns, and time. High-volume, low-margin items (like electronics) might work at 10–15%, while niche or luxury items can command 40–60% margins. A healthy ROI of 50% or more is generally a solid benchmark for reselling.
How do I calculate ROI (Return on Investment) for reselling?
ROI is calculated as (Net Profit ÷ Total Cost) × 100. For example, if you paid $25 for an item and earned $10 profit after all fees, your ROI is 40%. This calculator computes ROI automatically based on your item cost and net shipping cost as the total invested amount.
Which marketplace has the lowest seller fees?
Facebook Marketplace and Vinted charge 0% platform fees, making them the cheapest options. Bonanza (3.5%) and Etsy (6.5%) are also relatively low-fee platforms. eBay, Poshmark, and Amazon charge 13–20%, which significantly impacts your required selling price on higher-value items.
Do marketplace platforms collect sales tax automatically?
Most major marketplaces (eBay, Etsy, Amazon, Mercari, Poshmark) automatically collect and remit sales tax on behalf of sellers in most US states under Marketplace Facilitator laws. In that case, you can leave the Sales Tax field at 0%. Only enter a sales tax rate if you are responsible for collecting it yourself.