What each item has to cover
A price that only matches what others charge can still lose money. Start from your own costs. For a reselling business, each item carries:
- Cost to buy the item
- Shipping you pay
- Packaging
- Returns
- Card and payment fees, as a share of the price
Then a share of the costs you pay every month, however much you sell:
- Store platform, apps and subscriptions
- Storage or workspace
- Product liability insurance
- Ongoing marketing and ads
- Bookkeeping and tax preparation
And two things most first prices leave out: your own pay, and money set aside for income and self-employment tax on the profit.
Three prices worth knowing
- The price that covers costs. Monthly costs shared across your expected items, plus the cost of each item, grossed up for card fees. Below it, every month loses money.
- The price that pays you. The same, with your pay before tax added to the monthly costs. This is the real minimum if the business is your income.
- A recommended price. The price that pays you plus a profit cushion for slow months, repairs and growth.
The quick check above works out all three from your numbers. The pricing calculator shows each step of the formula.
Check your price against your area
Prices vary a lot by town, so we don’t publish averages. Collect real ones instead: ask three or more local businesses for a quote the way a customer would, and note what each includes. Then answer these:
- What do local competitors charge? Ask for quotes the way a customer would.
- How long does each item take you, including travel and preparation?
- How many items can you deliver in a week at a quality you’re proud of?
If the price that pays you is above everyone you found, that’s worth knowing before you start. Lower a cost, sell more each month, or offer something customers will pay more for.
Pricing mistakes to avoid
- Your time sourcing, listing and shipping is the hidden cost. Track hours per item, not just the buy price.
- Pricing from the cost of materials alone, and forgetting packaging, platform and card fees, shipping you absorb and returns.
- Keeping the same price when your suppliers raise theirs. Check your costs every few months.
Next steps
- Starting a reselling business: the work, customers, licenses and how to test demand.
- Test a full reselling plan: startup cash, the ramp-up, a stress test and a decision report.
- How to calculate your break-even point
- Considering a reselling franchise? Compare the fees and long-term earnings with going independent.
General information, not financial, tax or legal advice. See our disclaimer.
