A practical workflow
Follow the guide step by step
- 01
Pick a realistic selling price
Use a price you expect to hold, not the highest recent spike. Consider the lower end of recent history.
- 02
Subtract marketplace costs
Remove the referral fee, fulfillment fee, and any prep or inbound cost per unit.
- 03
Subtract holding and return costs
Include storage for your expected hold time and a return allowance.
- 04
Apply your minimum profit
Subtract the minimum profit or the ROI you require.
- 05
Compare with supplier cost
If the supplier price is above the result, pass or negotiate.
Work backward, not forward
Many sellers add up costs and see what profit remains. Working backward from your required profit gives you a hard ceiling to compare with every supplier offer.
Margin Seller computes the maximum buy price from your inputs and shows it next to the current supplier cost, so the decision is visible at a glance.
Use a ceiling every time
Set the ceiling before you start browsing offers, so the decision is made against a rule rather than against a tempting discount.
Recalculate it whenever fees, competing prices, or your profit requirements change, because last month's ceiling may no longer hold.
Make the ceiling a rule
Write your ceiling down before you shop and treat anything above it as a pass. Rules made before a deal are easier to follow than judgments made during one.
Re-calculate when fee assumptions or competing prices change, because a ceiling that was safe last month may no longer hold. If the supplier price is only slightly above the ceiling, negotiate or buy a smaller quantity instead of lowering your profit requirement. Treat the result as a planning estimate, and confirm current marketplace rules and fees before you place an order.
- Set the ceiling before browsing suppliers.
- Use a conservative selling price.
- Recalculate when prices or fees change.
Common questions
Frequently asked questions
Should I use ROI or profit to set the ceiling?
Use whichever your business needs. Many sellers require both a minimum dollar profit and a minimum ROI, then use the stricter result.
What price should I assume?
A conservative price you expect to achieve, not the best recent one. Running a lower-price scenario helps.
What is the maximum I should pay for arbitrage stock?
The amount that still leaves your minimum profit and ROI after all fees.
Ready to check a listing?
Put the assumptions to work.
Bring the visible listing facts and your own costs into a product audit before you commit to inventory.