Resale Business Profit Margins in Australia: What to Expect and How to Improve Them
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. ...