eBay profit formula 2026: profit, margin and ROI

Core formula

Profit = revenue - sourcing cost - platform fees - shipping - packaging - advertising - other deal costs.

Margin and ROI answer different questions:

• Margin: how much of your revenue remains as profit?
• ROI: how much profit did you generate relative to invested capital?

Example

Buy an item for EUR 35 and sell it for EUR 79. If fees, packaging and shipping add another EUR 16, the simplified profit is EUR 28.

• Profit: EUR 28
• Margin on EUR 79 revenue: about 35%
• ROI on EUR 35 sourcing cost: 80%

The real eBay fee for a business seller still depends on the exact category and account conditions.

Reseller rule

A high ROI is not automatically a strong deal when the absolute profit is tiny. Review profit, ROI and expected time-to-sale together.