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Guide · Reseller margins

What Is a Good Profit Margin for Reselling?

A good profit margin for reselling is 40–60% after marketplace fees and shipping — that is, you keep $40–$60 of profit from every $100 sale once fees, item cost and shipping are paid. Below 30% is thin: one return or damaged item can wipe out several sales’ profit. Above 70% is possible on rare or local finds, but it is not a realistic target for everyday sourcing.

Fees checked October 2026 · US fee schedule

Margin, markup and ROI — do not mix them up

Resellers use three numbers that sound alike and mean different things:

The margin calculator computes all three from your numbers so you can stop doing them by hand.

What margin do you actually get, by platform?

Same item, same costs ($10 item cost, $5 shipping), $50 sale — the platform alone moves your margin by nearly 16 points:

MarketplaceFees on $50ProfitMargin
Depop$2.10$32.9065.8%
TikTok Shop (6%)$3.00$32.0064.0%
Mercari$5.00$30.0060.0%
Etsy$5.20$29.8059.6%
Whatnot (Standard)$5.75$29.2558.5%
StockX (Level 1)*$11.50$28.5057.0%
eBay$7.20$27.8055.6%
Poshmark$10.00$25.0050.0%

*StockX profit here is payout minus item cost only, because its $5 shipping fee is already inside the $11.50 — the same convention as the StockX vs eBay comparison. Even Poshmark, the most expensive here, still delivers a 50% margin on this example — which shows that sourcing cost matters more than platform choice. A $25 item sold for $50 on Depop earns only 35.8% margin ($47.90 kept, minus $25 cost and $5 shipping = $17.90 profit), worse than a $10 item on Poshmark.

Margin targets by what you sell

What quietly eats your margin

How to raise your margin without raising prices

Frequently Asked Questions

What is a good profit margin for reselling?

40–60% after marketplace fees and shipping is good for most resellers. Below 30% is thin; above 70% is excellent but unusual outside thrifted or local finds.

Is 30% margin good for reselling?

It is workable on high-volume, low-effort items (like sneakers), but thin for anything with returns or slow turnover. One return in ten can erase it.

How do I calculate my reselling margin?

Margin = (sale price − fees − item cost − shipping) ÷ sale price. Use the margin calculator or the reseller profit calculator for the full breakdown.

What margin do I need to cover taxes?

That depends on your tax situation — this guide is not tax advice. As a rule of thumb, resellers who set aside 20–30% of profit for taxes find a 50%+ gross margin comfortable. See reseller taxes and the 1099-K explained (coming with the Phase 2 guides).

Does a higher price always mean a better margin?

No — fees scale with price, and higher prices sell slower. The best margin comes from the lowest cost base at a price the market actually pays, on the cheapest platform for that item.

Related tools & resources

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.