Calculate proceeds before calling them profit.
The sale price is only one part of an item’s economics. Track the costs that apply to your own operation.
Start with retained merchandise
Use the amount retained after cancellations, returns and partial refunds. Keep postage collected separate so it can be compared with delivery costs. Current asking value is not revenue.
Subtract the relevant costs
A practical item contribution calculation is retained receipts less acquisition cost or consignor payout, selling fees, payment charges, postage, packaging and item-specific work. Avoid double-counting fees already deducted from a payout.
Business profit also needs overheads and the applicable tax treatment. An item contribution figure alone is not net business profit.
Illustrative example — not a marketplace fee schedule
If an item retains A$200 in merchandise and has A$80 acquisition cost, A$20 selling charges and A$15 unrecovered delivery and packaging costs, the contribution is A$85 before other costs and tax. These are chosen inputs, not category averages or observed TurnGoods results.
Use a dated fee assumption
Check the applicable seller plan, marketplace, currency and optional charges. Explore the fee tools; confirm account-specific charges against the marketplace statement. Compare categories using your own retained outcomes rather than an unsupported industry margin table.