The True Expenses of Reselling: Insights Gained from a Year of Monitoring Every Cent

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      Most resellers tend to overrate their profits—by as much as 25 to 40%. This conclusion comes from Oleksandr Prudnikov, a software developer based in London, who spent a year meticulously recording every item his wife bought and sold as a reseller. He tracked every car boot sale entry fee, every gallon of gas, and every padded envelope and roll of tape. The results revealed a reality quite different from expectations.

      If you're engaging in reselling as a side hustle—whether sourcing from garage sales, thrift stores, flea markets, or charity shops—you might be facing a similar situation. Here’s what a year of diligent tracking unveiled about the hidden costs of reselling.

      The Issue: Revenue vs. Profit

      Oleksandr's wife started her reselling venture about 18 months ago. She would attend car boot sales on Saturday mornings, purchasing 10 to 15 items, and then list them on eBay and Vinted throughout the week. After a few months, her sales ranged from $600 to $800 monthly. It seemed like a solid side hustle, but when Oleksandr examined their bank account, the numbers didn’t align. The balance wasn’t increasing as expected based on sales figures.

      “The problem was straightforward,” he states. “She was tracking revenue rather than profit. The disparity between those two figures is where many resellers unknowingly incur losses.”

      Unspoken Costs

      Every reselling video on YouTube and TikTok typically highlights the purchase price and sales price. “Bought this for $5, sold it for $40!” This implies a profit of $35, right? Not even close. Here are the expenses that separate revenue from actual profit.

      Platform Fees

      This is a well-known cost but often underestimated. eBay charges around 12-13% of the total sale, including shipping in the US, and 12.8% in the UK. Mercari takes 10%, Poshmark takes 20% on sales over $15, and Vinted charges the buyer, meaning no seller fee (hence Vinted sellers usually enjoy better margins). Facebook Marketplace is free for local pickups but incurs fees for shipped items. On a $40 eBay sale, approximately $5 goes to fees. Thus, that $35 “profit” is reduced to $30.

      Shipping and Packaging

      This is a significant yet often overlooked factor affecting resale margins. A standard shipping label can cost between $4 to $8, depending on size and weight. A padded envelope ranges from $0.50 to $1.50. Adding boxes, tape, and tissue paper could increase costs by another $1 to $2 per item for proper packaging. That totals $5.50 to $11.50 per item in shipping and packaging expenses. After accounting for these costs in our $40 sale, the “profit” might dwindle to about $22. And this doesn’t even include expenses that most resellers neglect.

      Sourcing Costs (The Hidden Expenses)

      This is where significant losses occur. Entry fees exist for car boot sales and flea markets, often costing between $6 to $18 per visit in the UK. Garage sales are typically free, but estate sales and flea markets in the US may also charge admission. Gas and transportation are also critical factors; if you drive 20 to 40 minutes each way to a prime car boot sale, you’re spending $8 to $15 on fuel per trip. If you're traveling across town to thrift stores, you're incurring gas expenses regardless of your awareness.

      Pro Tip: Be sure to keep track of and deduct your mileage on taxes.

      Parking fees can also accumulate at some flea markets and thrift store areas. It’s crucial to note that these expenses should be distributed among all items purchased on a given day. For example, if you pay $12 for flea market entry, $10 in gas, and buy 10 items, that's an additional $2.20 per item in shared sourcing costs on top of its purchase price. “Most resellers overlook this calculation,” he points out. “They regard entry fees and gas as hidden costs that don’t count.”

      Revisiting a “Great Flip”

      Let’s examine a real example from Oleksandr’s tracking. His wife bought a Le Creuset casserole dish for $10 at a car boot sale and sold it on eBay for $55. It seems like a $45 profit on paper. However, here’s the reality:

      Cost Breakdown

      Amount

      Purchase Price

      $10.00

      Share of Entry Fee ($12 ÷ 12 items)

      $1.00

      Share of Gas ($9 ÷ 12 items)

      $0.