Resale IQ / Reselling manual
Chapter 1 · The economics · 7 min read

What actually makes money in reselling

Almost everyone who starts reselling tracks two numbers: what they paid and what it sold for. The gap between them feels like profit. It is not. It is revenue minus cost of goods, and there are four more subtractions between that figure and the money that stays in your account.

The equation nobody writes down

Profit on a single item is the sale price, minus the platform's cut, minus whatever shipping you absorbed, minus the buy price, minus the share of your losses that this item has to carry. That last term is the one that gets skipped, and it is usually the one that decides whether the month was profitable.

Losses are not optional. Some items never sell. Some sell after four price cuts. Some come back as returns or disputes. If you sell 100 items and 12 of them end up at or below cost, the other 88 are paying for those 12 whether you account for it or not. A reseller who thinks they are running a 35% margin and is actually running 24% will keep reinvesting at prices that cannot work.

  • Sale price — what the buyer actually pays you, not the list price
  • Platform fee — Resale IQ models 5% on Vinted; other platforms run 9.5% to 20%
  • Shipping absorbed — anything you covered to close the sale
  • Buy price — including petrol, parking, entry fees and the items you bought in the same lot that you cannot sell
  • Loss allowance — the write-offs and deep discounts spread across everything that did sell

Margin percentage is the wrong headline number

A 50% margin on a €10 item is €5. A 20% margin on a €120 item is €24. Percentage margin is useful for comparing two items of similar price and useless for deciding where to put your money. What you are actually optimising is euros of profit per euro of capital per week — margin and speed together, never margin alone.

This is why volume brands and premium brands are different businesses rather than better and worse versions of the same one. High-volume, low-price stock returns small amounts quickly and forgives mistakes. Premium stock returns larger amounts slowly and punishes them. Both work. Mixing them without noticing which one you are doing does not.

The test
Before buying anything, ask what this item returns per week of shelf life, not what it returns per sale. An item that doubles your money in six months is worse than one that adds 25% in three weeks.

Why the buy price carries all the risk

You control exactly one number in the equation. You do not set the platform fee, you cannot make a buyer pay above market, and you can only influence sell-through at the margins. The buy price is the whole of your control surface, which is why professional resellers obsess over it and hobbyists obsess over the sale price.

Every mistake in judgement — wrong size, wrong season, condition worse than it looked, demand softer than you thought — is survivable if you bought low enough. None of them are survivable if you paid close to retail resale value and planned to make it up on a strong listing.

Key points
  • Profit is sale price minus fee minus shipping minus buy price minus your share of losses. Most people stop at buy price.
  • Track euros per week of capital, not margin percentage.
  • The buy price is the only variable you fully control — it absorbs every other mistake.
  • Unsold and deeply-discounted stock is a real cost that has to be spread across the items that did sell.

Questions

What margin should I target on Vinted?

There is no universal figure, because it depends on how fast the item turns. As a working rule, price-tier stock that sells in under three weeks can justify a thinner margin than stock that takes two months. Resale IQ's buy-below price targets a healthy margin after fees for the specific model rather than applying one blanket percentage.

Do I need to account for my own time?

If you want an honest picture, yes. Photographing, listing, answering messages and packing is roughly ten to fifteen minutes per item once you are practised. At any sensible hourly rate that makes very cheap items marginal, which is why experienced sellers raise their minimum item price long before they raise their volume.

Put this chapter to work.

Resale IQ turns a Vinted listing into one answer: BUY, WATCH, or SKIP — with buy-below price and best sizes.

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Live, while you read this
The 26 brands Resale IQ tracks had about 6,518 items leave the shelf in the last seven days across Vinted ES, FR, DE, IT and PT. Every figure in this manual's data pages comes from that same feed — see the full market data.
2. How to work out the most you can pay
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