How to price items after shipping costs
Jan 19, 2025
Why Accurate Pricing Matters
Pricing your items correctly is crucial for any reseller. Get it right, and you’ll cover your costs, attract more buyers, and avoid unpleasant surprises. Get it wrong, and you risk losing money with every sale. This guide walks you through simple, actionable steps to accurately price items after shipping costs, keep your inventory and listings in sync, assign basic team roles, track sales and fees, and handle shipping or pickup efficiently.
1. Calculate Your True Cost Per Item
Start by understanding all the costs associated with each item. Here’s what to include:
Purchase Cost: The amount you paid for the item.
Shipping to You: If you paid for inbound shipping, add this to the item’s cost.
Packing Materials: Boxes, tape, bubble wrap—estimate a per-item amount.
Platform Fees: Selling on eBay, Poshmark, Mercari, or others? Check their fee structures (usually a percentage of the sale price).
Outgoing Shipping: The cost to ship the item to the buyer. If you offer free shipping, this cost comes out of your profit.
Simple Formula
For example, if you buy a shirt for $10, pay $2 inbound shipping, use $0.50 in packing, pay a 10% fee on a $25 sale ($2.50), and shipping to the buyer costs $5, your true cost is $10 + $2 + $0.50 + $2.50 + $5 = $20.
2. Set Your Price for Profit
Decide on your desired profit margin. A common beginner target is 20-30%. Calculate your minimum sale price:
Using the above example and a 25% margin:
Round up to a practical price, like $27. If the market can’t bear that price, reconsider your sourcing or shipping methods.
3. Keep Inventory and Listings in Sync Across Sites
Selling on multiple platforms increases your reach, but can quickly become a headache if you’re not organized. Here’s how to stay synced:
Use a Centralized System: Tools like Gavelbase allow you to manage inventory, listings, sales, and shipping from one dashboard. This reduces errors and double-selling.
Manual Method: At minimum, maintain a shared spreadsheet (e.g., Google Sheets) with columns for SKU, item name, quantity, where listed, and sale status. Update it immediately when something sells.
Sync When You List: Every time you list or make a sale, update your central system before moving on to the next task.
4. Assign Basic Team Roles
Even if you’re a solo seller, defining roles can help. If you have helpers, these roles keep things smooth:
Lister: Handles creating and posting new listings.
Packer: Prepares sold items for shipping or pickup, including printing labels.
Inventory Manager: Updates inventory records and removes sold listings from all platforms.
Customer Service: Responds to buyer questions and resolves issues.
If you’re solo, tackle tasks in batches—set a time for listing, a time for packing, and so on, to avoid mistakes.
5. Track Sales and Fees
Know your numbers to avoid surprises at tax time and to understand which items are most profitable. Here’s how to keep it simple:
Digital Spreadsheet: Track each sale with columns for item, sale price, platform fee, shipping cost, and profit.
Inventory Software: Many tools (again, Gavelbase and others) automatically pull in sales and fees from connected platforms.
Review Regularly: Set a calendar reminder to review your numbers weekly or monthly.
6. Handle Shipping or Pickup Cleanly
Shipping is where many beginners lose money or time. Here’s how to stay efficient:
Offer Calculated Shipping: Let buyers pay for actual shipping costs, or use flat rates based on your average shipping expense.
Print Labels Online: Use platform tools or services like Pirate Ship to buy and print labels at discounted rates.
Track Everything: Enter tracking numbers into your central system and share with buyers promptly.
Local Pickup: For local-only items, use a safe, public location, and mark the item as picked up in your inventory as soon as it’s gone.
Summary Table: Example Pricing Breakdown
Item | Purchase | Inbound Ship | Packing | Platform Fee | Outbound Ship | Total Cost | Min. Sale Price (25% margin) |
|---|---|---|---|---|---|---|---|
Shirt | $10 | $2 | $0.50 | $2.50 | $5 | $20 | $26.67 |
Book | $3 | $1 | $0.30 | $0.90 | $4 | $9.20 | $12.27 |
Quick Checklist for Beginners
List all costs for each item, including shipping and fees
Set a realistic profit margin and calculate your minimum price
Use a central system or spreadsheet to track listings and inventory
Assign roles or batch your work to avoid mistakes
Track every sale, fee, and shipping expense
Handle shipping or pickup efficiently—always mark items as sold or shipped promptly
Further Reading
Conclusion
Pricing items after shipping costs isn’t complicated, but it does require attention to detail and good record-keeping. By calculating your true costs, setting prices for profit, keeping your inventory in sync, and handling sales and shipping cleanly, you’ll build a strong foundation for reselling success. Start small, use tools that fit your workflow, and review your numbers often. Happy selling!