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How to calculate reseller profit after fees

DigitalMakr · Practical planning guide

Start with actual revenue

Record the sale price plus shipping charged to the buyer, excluding sales tax collected on behalf of a tax authority.

Subtract every selling cost

Subtract inventory cost, platform fees, payment fees, postage, packaging and refunds. A $40 sale with $12 inventory, $5 fees, $6 shipping and $1 packaging leaves $16 before overhead and taxes.

Track margin and cash separately

Profit margin is profit divided by revenue. Track unsold inventory and monthly overhead separately so you know how much cash is tied up.