Reselling Glossary
Plain-English definitions of every term you'll encounter tracking reselling profit.
Cost of Goods Sold (COGS)
What you paid to acquire the item you sold.
Net Profit
What you actually made after every cost.
Gross Profit
Sale price minus COGS only — before fees and shipping.
Platform Fee
The cut a marketplace takes from each sale.
Final Value Fee
eBay's name for its selling fee — charged when an item sells.
ROI (Return on Investment)
Net profit as a percentage of what you invested.
Profit Margin
Net profit as a percentage of your sale price.
Break-Even Price
The minimum sale price where you make $0 profit.
Haul
A batch of items bought together at once.
Flip
Buying an item and reselling it for more than you paid.
Sourcing
The process of finding and buying items to resell.
Liquidation
Selling inventory quickly, often at a discount, to turn it into cash.
Listing Fee
A fee charged to post an item for sale on a platform.
Payment Processing Fee
The fee to move money from buyer to seller through a payment system.
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