How to resell for profit: a beginner's guide

To resell for profit, you buy products for less than they sell for online, list them on a marketplace like Walmart, Amazon or eBay, and keep the difference after fees and costs. The part most beginners skip is checking the numbers before buying. This guide shows how to resell step by step: what to resell, where to source it, where to sell, how to price, and how to know an item is profitable before it goes in your cart.

How to resell: the basic idea

Every resale comes down to one line of math:

Profit = sale price − marketplace fees − shipping or fulfillment − what you paid − other costs

If an item sells for $30, the marketplace takes about $4.50 at a 15% referral fee, shipping costs $6 and you paid $12, you keep $7.50 before tax. Whether you resell sneakers on eBay or clearance toys on Walmart, the math is the same. Only the fees change. Our guide on how to calculate Walmart profit walks through every fee for Walmart sellers.

Step 1: Decide what to resell

Good first products are easy to find, easy to ship and easy to check. For beginners, that usually means:

• New, brand-name items with a barcode. Toys, games, home goods, kitchen items, pet supplies and seasonal products. You can scan the barcode and see exactly what they sell for.
• Small and light items. Shipping and fulfillment fees grow with weight and size.
• Items with steady demand. A product that sells every day is safer than a fad.

Avoid at first: items with a lot of restricted brands (beauty, supplements, some electronics), fragile items, and anything you can't confirm is genuine. Used goods and collectibles sell well on eBay and similar sites but take more work to list and price. For Walmart ideas, see the best items to sell on Walmart.

Step 2: Find where to source products

Step 3: Choose where to sell

• Walmart Marketplace. No monthly fee, a 15% referral fee in most categories, and often fewer sellers per listing. It's application-only and requires a business tax ID. Start with how to sell on Walmart.
• Amazon. The biggest audience and the most competition. Many brands and categories need approval.
• eBay. Easy to start as an individual, and the best fit for used, vintage and one-of-a-kind items.

Many resellers sell new items on Walmart or Amazon and used items on eBay. You don't have to pick only one, but learning one marketplace well first is easier.

Step 4: Check profit before you buy

This is the step that separates profitable resellers from people with a garage full of stock. For every item, check four things:

1. Profit after all fees. Not just the price difference. Referral fees, fulfillment fees and storage come off the top.
2. ROI. Profit divided by what you paid. Many resellers look for 30% or more so there's room if the price drops.
3. How fast it sells. A great margin on an item that sells once a month ties up your cash.
4. Competition. How many other sellers are on the listing, how much stock they hold, and whether the marketplace itself sells it.

A scanner app does this in seconds. For Walmart, Margenos shows referral and WFS fees, profit, ROI, the most you can pay, a sales estimate and every competing seller with stock, on any Walmart.com listing or by scanning a barcode with the Android app. For other marketplaces, see our roundup of the best reseller apps.

Step 5: Price to sell

On Walmart and Amazon, most new items share one listing, and the seller who wins the Buy Box gets most of the sales. Price close to the current Buy Box price, include shipping in your comparison, and set a minimum price based on your real costs so you never sell at a loss. On eBay, look at sold listings, not active ones, to see what buyers actually pay.

Step 6: List, ship and track

Match existing listings by UPC when you can; it's faster and buyers already trust them. Ship on time with tracking, or use a fulfillment service like Walmart Fulfillment Services or Fulfillment by Amazon. Keep a simple record of every item: cost, date bought, sale price and fees. You'll need it for taxes and to see which products are worth buying again.

How to resell clearance items

Clearance is where most resellers start, because markdowns can be deep. The rules are the same as above, with a few extra traps: cheap items get eaten by per-unit fees, seasonal items can sit in storage, and stores may limit how many you can buy. Walmart's own Terms of Use say it can limit quantities per person or household and refuse sales to dealers or resellers. Our guide on how to resell Walmart clearance covers it step by step, with a worked example.

Common beginner mistakes

• Buying based on the price difference instead of profit after fees.
• Buying 20 units of something before selling one.
• Listing restricted brands without checking first.
• Ignoring how many sellers are already on the listing.
• Not tracking costs, then not knowing if the business makes money.

Sources: Walmart Marketplace referral fees · Walmart seller registration guide · Walmart.com Terms of Use. Example numbers are for illustration. Walmart changes its rules; confirm in Seller Center.