Guide · Reseller pricing
How to Price Items to Make a Profit
To price an item for profit, start from the profit you want, then add back your item cost, your actual shipping cost, and the marketplace’s fees — and remember fees are charged on the price itself, so the price has to cover its own fee. The fee-proof formula is: list price = (item cost + shipping cost + target profit) ÷ (1 − fee rate), plus any flat per-order fee. Worked through for eBay below, this method stops the most common reseller mistake: pricing from cost alone and watching fees eat the margin.
Fees checked October 2026 · US fee schedule
The fee-proof pricing formula
Most resellers price backwards: they pick a price that “feels right” and hope the profit survives. Fees do not work that way. On eBay, a $50 sale at the standard 13.6% rate costs $7.20 in fees. On Poshmark, the same sale costs $10.00. If you priced that item at $50 because you paid $25 for it, your profit is not $25 — it is $27.80 minus shipping on eBay and $25.00 minus shipping on Poshmark, before you even count the box and the label.
The reliable method is to price from your target profit:
- Set your target profit. Pick a dollar amount or a margin (profit ÷ sale price) you will accept. Many resellers aim for 40–60% margin after fees.
- Add your real costs. Item cost, actual shipping cost, packaging, and any marketplace flat fee (for example eBay’s $0.40 per-order fee on orders over $10).
- Divide by (1 − fee rate). This step is the one people skip. If the fee rate is 13.6%, divide by 0.864 — the result is a price whose fee leaves exactly your target profit behind.
- Round up to a clean price and check it. Run the rounded price through the platform calculator to confirm the profit still holds.
Example: you paid $10 for an item, shipping will cost you $5, you want $20 profit, and you will sell on eBay at 13.6% with a $0.40 per-order fee. Profit = price − 13.6% of price − $0.40 − $10 − $5, so price = ($10 + $5 + $20 + $0.40) ÷ 0.864 = $40.97. Check: fees $5.97, payout $35.00, profit exactly $20.00. If you had priced it at $35.00 (costs + profit, ignoring the fee), your profit would have been only $14.84. The reverse price calculator does this math for any platform automatically.
Worked example: a $50 sale, priced right
| Line | eBay (13.6%) | Mercari (10%) |
|---|---|---|
| Sale price | $50.00 | $50.00 |
| Fees | $7.20 | $5.00 |
| You keep | $42.80 | $45.00 |
| Item cost | $10.00 | $10.00 |
| Actual shipping | $5.00 | $5.00 |
| Net profit | $27.80 | $30.00 |
| Margin | 55.6% | 60.0% |
The same $50 price gives $2.20 more profit on Mercari than on eBay — which is why the eBay vs Mercari comparison matters before you list. If you want the same $30.00 profit on eBay, the formula says list at $52.55 (($10 + $5 + $30 + $0.40) ÷ 0.864).
Fee rates to plug into the formula
Use the standard rate for the platform you will list on. If you plan to run ads or boosts, add that percentage to the fee rate before dividing.
| Marketplace | Fee rate for the formula | Flat fee to add |
|---|---|---|
| eBay (most categories) | 13.6% | $0.40 per order over $10 |
| Etsy | 9.5% (6.5% + 3%) | $0.45 ($0.20 listing + $0.25 processing) |
| Mercari | 10% | $0 |
| Poshmark (≥ $15) | 20% | $0 |
| Depop (US) | 3.3% | $0.45 |
| Whatnot (Standard, most categories) | 10.9% (8% + 2.9%) | $0.30 |
| Facebook Marketplace (shipped) | 10% | $0.80 minimum |
| TikTok Shop | 6% | $0 (plus affiliate % if you offer one) |
| StockX (Level 1) | 12% (9% + 3%) | $5.00 shipping + $5.00 minimum fee |
| Grailed (under $120) | 9.49% (6% + 3.49%) | $0.49 |
| Reverb | 8.19% (5% + 3.19%) | $0.49 |
| Vinted | 0% | $0 |
Five pricing mistakes that kill profit
- Forgetting fees are charged on shipping. eBay, Etsy, Mercari and Depop all charge fees on the shipping amount the buyer pays. Charging $10 shipping does not just pass the cost through — it adds $1.36 in eBay fees.
- Pricing under the Poshmark cliff. A $14 sale on Poshmark costs $2.95 (21.1%); a $15 sale costs $3.00 (20%). Never price just under $15 — either price at $14.95 and accept the flat fee, or push to $15+ where the percentage applies.
- Ignoring the StockX minimum. At $50, StockX Level 1 costs $11.50 because the $5 minimum transaction fee dominates. Low-value sneakers lose money on StockX even though the headline rate looks like 9%.
- Offering “free shipping” without raising the price. Free shipping means you pay the label. If shipping costs $5 and you did not raise the price by at least $5 ÷ (1 − fee rate), you just donated that margin.
- Setting one price for every platform. A price that earns 60% margin on Mercari earns 55.6% on eBay and 50% on Poshmark. Price per platform, or list where the fee is lowest for that item — check the comparator first.
Frequently Asked Questions
How do I price an item to make a profit after fees?
Use the fee-proof formula: list price = (item cost + shipping cost + target profit + flat fees) ÷ (1 − fee rate). Then verify the price in the platform calculator before listing.
What is a good profit margin for reselling?
Most resellers aim for 40–60% margin after fees and shipping. Below 30% leaves little room for returns, damaged items and slow sellers. See our guide on what a good profit margin for reselling is (coming with the Phase 2 guides).
Should I charge the buyer for shipping or offer free shipping?
Charging shipping keeps your price lower and your margin cleaner, but fees apply to the shipping amount too. Free shipping converts better on some platforms, but you must raise the price by shipping ÷ (1 − fee rate) to keep the same profit.
How do I price a bundle of items?
Price the bundle like one sale: one fee on the bundle price, one shipping cost, combined item cost. The bundle profit calculator shows the profit per item so you can see whether the bundle discount is worth it.
What if my price is higher than everyone else’s?
Then your item may not sell — and an unsold item earns $0. If the market price cannot support your target profit after fees, the item is a bad buy at that cost. Walk away, or find a cheaper source, rather than pricing at a loss.
Related tools & resources
- Reverse price calculator — solve the price that nets your target profit
- Reseller profit calculator — profit, margin and ROI on any sale
- All-platform fee comparator — rank 9 marketplaces by your payout
- What is a good profit margin for reselling? (coming with the Phase 2 guides)
- How much should I charge for shipping? (coming with the Phase 2 guides)
- Marketplace fee comparison chart — full 2026 data
Estimate only — not tax or business advice. Fees checked October 2026. Platform names are trademarks of their owners. We are not affiliated with any marketplace listed here.