Key Takeaways
- Platform fees range from 5% (Facebook) to 20% (Poshmark)
- Aim for at least 3x your purchase price to ensure profitability
- Don't forget to account for shipping materials, cleaning supplies, and your time
- ROI (Return on Investment) is the key metric for comparing flip opportunities
- Cross-listing on multiple platforms can maximize your selling speed
What Is Thrift Store Flipping?
Thrift store flipping (also called thrifting for profit or reselling) is the practice of buying secondhand items at thrift stores, garage sales, estate sales, or other discount sources, then reselling them at a higher price on platforms like Poshmark, eBay, Mercari, and Depop. The key to success is understanding your true profit after all fees and costs.
Many new resellers make the mistake of only looking at the difference between purchase and selling price. But platform fees, shipping costs, and other expenses can quickly eat into your margins if you're not careful. This calculator helps you see your actual profit before you buy.
Platform Fee Comparison: Where to Sell Your Finds
Each reselling platform has different fee structures. Here's a comprehensive breakdown:
| Platform | Fee Structure | Best For |
|---|---|---|
| Poshmark | 20% (or $2.95 for sales under $15) | Clothing, shoes, accessories |
| eBay | 13.25% + $0.30 per transaction | Everything, especially electronics & collectibles |
| Mercari | 10% flat fee | General items, quick sales |
| Depop | 10% fee | Trendy/vintage clothing, Gen Z market |
| Facebook Marketplace | 5% (or $0.40 for items under $8) | Local pickup, larger items |
| OfferUp | 12.9% for shipped items | Local sales, electronics |
Understanding the True Cost of Fees
Platform fees are calculated on the total transaction amount, which often includes shipping. For example, if you sell an item for $30 with $8 shipping on Poshmark, the 20% fee is calculated on $38, costing you $7.60 - not $6.00 as many beginners assume.
Pro Tip: The 3x Rule
As a general guideline, aim to sell items for at least 3 times what you paid. This gives you buffer room for fees, shipping costs, and occasional returns or price negotiations. A $5 thrift find should ideally sell for $15+ to be worth your time.
How to Calculate ROI for Thrift Flips
ROI (Return on Investment) is the most important metric for comparing flip opportunities. It tells you how much profit you make relative to what you invested.
The formula is simple:
ROI = (Net Profit / Total Investment) x 100
For example, if you buy a jacket for $8, spend $2 on cleaning supplies, and sell it for $45 with a $7 platform fee:
- Total Investment: $8 + $2 = $10
- Net Profit: $45 - $7 - $10 = $28
- ROI: ($28 / $10) x 100 = 280%
Hidden Costs to Track
Successful resellers track ALL their costs, not just purchase price:
- Shipping supplies: Boxes, poly mailers, tape, tissue paper
- Cleaning supplies: Lint rollers, stain removers, steamer
- Photography equipment: Lighting, backdrops, mannequins
- Storage costs: Shelving, bins, dedicated space
- Gas/transportation: Driving to thrift stores
- Returns and refunds: Budget 2-5% for buyer issues
- Your time: Don't forget to value your labor!
7 Tips to Maximize Thrift Flipping Profits
- Know your brands: Lululemon, Patagonia, Free People, and designer labels consistently resell well
- Check sold listings: Before buying, search "sold" listings on eBay/Poshmark to see actual selling prices
- Time your visits: Shop early in the week when new inventory is stocked
- Build a sourcing route: Map out multiple stores for efficient "sourcing runs"
- Price to sell: Faster turnover often beats waiting for the "perfect" price
- Cross-list strategically: List high-value items on multiple platforms
- Track everything: Use spreadsheets or apps to monitor inventory and profits
Frequently Asked Questions
Aim for a minimum 50% profit margin on your selling price, or 100%+ ROI on your investment. This means if you invest $10 total (purchase + costs), you should net at least $10 in profit. More experienced resellers target 200-400% ROI on individual items.
It depends on what you're selling. Poshmark is best for women's fashion, eBay for electronics and collectibles, Mercari for general items, and Facebook Marketplace for large items or local pickup. Many successful resellers cross-list on multiple platforms.
You have three options: offer free shipping (build cost into price), charge exact shipping, or use platform-provided labels. Poshmark includes shipping, eBay offers discounted labels, and Mercari provides prepaid labels. "Free shipping" listings often sell faster but calculate your profit carefully.
Yes, reselling income is taxable. If you earn over $600 on a platform, you'll receive a 1099-K. Keep records of all purchases and expenses - your COGS (Cost of Goods Sold) and business expenses are deductible. Consult a tax professional for advice specific to your situation.
High-margin items include: premium athletic wear (Lululemon, Nike), designer handbags and accessories, vintage band tees, Pyrex and vintage kitchen items, video games and consoles, and name-brand shoes. Look for items that are priced low but sell high - knowledge is your competitive advantage.