What is cost basis in reselling?
Also: COGS · Cost of goods sold
Cost basis, or cost of goods sold (COGS), is the total you invested in an item before profit: the purchase price plus costs like cleaning, repairs, shipping supplies, and fees. Subtracting cost basis from the sale price gives true profit. Tracking it per item is essential for pricing, taxes, and knowing which sourcing actually pays.
How it's used in a listing
A reseller who says “my cost basis on this coat is $8, so anything over that after fees is profit” is tracking what the item truly cost them.
How it maps to the grade scale
Cost basis isn't a condition grade, but condition informs it: a lower-grade item may need cleaning or repair costs that raise its cost basis, while its resale price falls. Grading at intake helps predict whether an item's cost basis leaves room for profit.
See where every condition sits on the GradeThread condition grading scale.
Cost basis — frequently asked
- What counts toward cost basis in reselling?
- Cost basis (COGS) includes the item's purchase price plus any costs to get it sold — cleaning, repairs, shipping supplies, and sometimes mileage. Marketplace and payment fees are also deducted when calculating true profit on a sale.
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