If you do not know your profit margins, you are not running a resale business — you are running a hobby that occasionally makes money. Here is what the numbers actually look like for Australian resellers, and how to improve them.
The Honest Numbers
Resale profit margins vary wildly depending on what you sell and how you source. But here are realistic benchmarks:
| Category | Typical Gross Margin | Notes |
|---|---|---|
| Luxury handbags | 40-60% | High ticket, high margin, slow turn |
| Branded fashion | 30-50% | Good volume, competitive market |
| Electronics | 15-25% | Fast turn, thin margins, risk of depreciation |
| Op shop flips | 60-80% | Lowest cost basis, highest relative margin |
| Consignment (your cut) | 30-50% | No inventory cost, but overhead is higher |
| Vintage/collectibles | 40-70% | Requires specialist knowledge |
These are gross margins — revenue minus cost of goods sold. Your net margin after platform fees, shipping, storage, and time will be significantly lower.
The Fees That Eat Your Margin
Australian resellers face a stack of costs that are easy to overlook:
- eBay final value fee: 13.2% on most categories
- Shopify transaction fee: 2% (on top of payment processing)
- Payment processing: 2.6% + 30c (Stripe/PayPal typical)
- Shipping: $8-15 for standard parcels within Australia
- Packaging: $1-3 per item
- Storage: If you rent space, factor in per-item cost
- GST: If registered, 10% on sales (but you claim back on purchases)
- Income tax: Marginal rate on net profit
A $100 sale on eBay with a $30 cost basis might look like a $70 profit. After fees and costs, you are looking at closer to $40-45. And that is before your time.
Calculating Your Real Margin
Here is the formula that matters:
Net Margin = (Sale Price - COGS - Platform Fees - Shipping - Packaging - Other Costs) / Sale Price x 100
Most resellers only calculate gross margin and wonder why they are working 40 hours a week for less than minimum wage.
How to Improve Your Margins
1. Source Smarter, Not Cheaper
The cheapest inventory is not always the most profitable. A $5 item that sells for $15 gives you $10 gross profit. A $30 item that sells for $80 gives you $50. Focus on items with the highest dollar margin, not the highest percentage margin — a 200% margin on a $5 item is only $10.
2. Price with Data
Underpricing is the single biggest margin killer for resellers. Use sold price data to set your prices at the market rate — not below it. If an item is fairly priced and not selling, the problem is not the price. It is the listing quality, photos, or market demand.
3. Reduce Time Per Listing
Time is your biggest hidden cost. If you spend 15 minutes on each listing and value your time at $30/hour, every listing costs you $7.50 before the item has sold. Faster listing workflows directly improve your effective hourly rate.
4. Sell Across Multiple Platforms
More platforms means more potential buyers, which means faster sales and less time holding inventory. The cost of listing on an additional platform is minimal. The revenue gain is significant.
5. Track Everything
You cannot improve what you do not measure. Track your cost basis, sale price, fees, and time per item. Look at your margins by category, by platform, and by sourcing method. The data will tell you where to focus.
The Software Difference
Resellers who use proper inventory and pricing tools typically see a 15-25% improvement in net margins within the first three months. The gains come from:
- Better pricing (data-driven vs guesswork)
- Faster listing (less time cost per item)
- Automatic fee calculation (no surprises)
- Margin reporting by category (know where to focus)
TurnGoods tracks cost basis, calculates fees, and shows you margin per item, per category, and per platform — so you always know exactly where you stand.
Ready to actually understand your resale profitability? Try TurnGoods free and get margin reporting built for Australian resellers.