Category
Reselling & E-commerce
Calculate actual profit after fees. Account for time invested. Make smarter sourcing decisions.
Tools
Profit Calculator
PopularTrue profit after all platform fees. Compare Etsy, eBay, Poshmark, Mercari side-by-side.
Should I Flip This?
PopularQuick in-store sourcing decisions. Instant verdict on flip potential.
Tax Estimator
PopularSelf-employment tax calculator with quarterly payment schedule.
Etsy Startup Costs
Initial investment breakdown with break-even analysis.
The Complete Guide to Reselling as a Side Hustle
Reselling has become one of the most accessible ways to earn extra income. With platforms like eBay, Etsy, Poshmark, and Mercari, anyone can start selling items online with minimal upfront investment. However, turning a profit consistently requires understanding the true costs involved and developing efficient processes.
Getting Started: The Basics
Most successful resellers start by selling items they already own. This approach costs nothing upfront and helps you learn the platforms before investing in inventory. Old electronics, clothing, collectibles, and household items can all find buyers online.
Once you have made a few sales and understand the process, you can begin sourcing inventory from thrift stores, garage sales, estate sales, clearance sections, and online auctions. The key is finding items you can purchase for significantly less than their resale value, while accounting for your time and all associated costs.
Understanding the True Costs
Many new resellers focus only on the difference between what they paid and what they sold an item for. This leads to disappointing results. The true costs of reselling include:
- Platform fees: 10-20% of your sale price depending on the platform
- Payment processing: Typically 3% plus a flat fee per transaction
- Shipping costs: Carrier rates plus packaging materials
- Sourcing costs: Gas, time, and any sourcing subscriptions
- Photography and listing time: Often 15-30 minutes per item
- Returns and damaged items: Plan for 3-5% of sales to be returned
- Self-employment taxes: 15.3% of net profit plus income tax
Choosing the Right Platform
Each platform has different fee structures, audiences, and selling dynamics. eBay offers the largest audience but higher fees. Poshmark handles shipping but takes 20% of sales over $15. Mercari has competitive fees but smaller buyer pools for some categories. Etsy works best for vintage (20+ years old) and handmade items.
Many successful resellers cross-list on multiple platforms to maximize exposure, though this requires more time to manage inventory and respond to inquiries.
Realistic Income Expectations
Casual (5-10 hrs/wk)
$200-$500
per month
Part-time (15-20 hrs)
$500-$1,500
per month
Committed (25+ hrs)
$1,500-$4,000
per month
These figures represent net profit after all expenses. Reaching higher income levels requires developing efficient systems, focusing on higher-margin items, and treating reselling as a legitimate business rather than a casual hobby.
Pros and Cons
Advantages
- +Low startup costs (can begin with $0)
- +Flexible schedule works around other commitments
- +Income potential scales with effort
- +Learn valuable business skills
- +Can be done entirely from home
Challenges
- -Time-intensive per sale
- -Inventory ties up cash
- -Dealing with difficult buyers
- -Self-employment taxes
- -Requires storage space
Key Takeaways for Success
- 1.Calculate your effective hourly rate, not just total revenue
- 2.Track every expense and set aside 25-30% for taxes
- 3.Develop systems for photography, listing, and shipping
- 4.Focus on categories where you have knowledge or interest
- 5.Start with items you own before investing in inventory
- 6.Use our calculators to verify profitability before buying
Common questions
What fees do reselling platforms charge?
Fees vary significantly by platform. Etsy charges listing fees (~$0.20), transaction fees (6.5%), and payment processing (3% + $0.25). eBay takes 13.25% final value fee. Poshmark takes $2.95 flat for items under $15 or 20% for items over $15. Our calculators factor in all these platform-specific fees.
How much can I realistically make reselling?
Income varies widely based on time invested, sourcing strategy, and product niche. Part-time resellers averaging 10-15 hours per week typically report $300-$1,000 monthly profit. Full-time resellers can earn $2,000-$5,000+ monthly, but this requires significant time and often upfront inventory investment.
What startup costs should I expect?
You can start reselling for under $100 by flipping items you already own. To build inventory, expect to invest $200-$500 initially. Additional costs include packaging supplies ($50-$100), shipping scale ($20-$40), and potentially photography equipment.
Which reselling platform is best for beginners?
eBay and Mercari have the lowest barriers to entry with no monthly fees. Poshmark works well for clothing and fashion. Etsy is ideal for handmade or vintage items. Our Profit Calculator lets you compare the same item across platforms.
All calculations are estimates. Actual profits depend on sourcing costs, time invested, market conditions, and individual selling skills. Platform fees subject to change. Consult a tax professional for self-employment advice.