Reseller Margin Calculator

How Resellers Should Price Wholesale Stock

When you buy stock — sarees, jewellery, kurtis, bags — from a wholesaler, the price on the invoice is only part of your real cost. Add the transport or courier to get the batch to you, split evenly across every piece, and you get your true "landed cost." Pricing from the invoice price alone quietly shrinks your margin on every single sale.

Once you know your landed cost per piece, add packaging, any shipping you pay to the customer, and the payment gateway fee if you accept online payment — then apply the margin you actually want to keep. That's the order this calculator follows, and it's the order that protects your profit instead of guessing at it.

Margin vs Markup — The Mix-Up That Costs Resellers Money

Markup is profit as a percentage of your cost. Margin is profit as a percentage of your selling price. They sound similar but the numbers are always different — margin is always the smaller of the two — and confusing them is one of the most common pricing mistakes resellers make.

Say a piece costs you ₹485 landed and you sell it for ₹799. Your markup — profit over cost — is about 61%. But your margin — profit over selling price — is only about 37%. If you think you're keeping a "61% margin," you're actually overestimating your real profit by a lot. Sellers running their own store on Storecub can set prices with this distinction built in, so quoted margins match reality.

Worked Example: A Saree Batch

Say you buy 20 sarees at ₹450 each, and pay ₹400 courier for the whole batch. Your transport works out to ₹20 per piece, so your landed cost is ₹450 + ₹20 + packaging (say ₹15) = ₹485. If you sell at ₹799 with a 2% payment fee, your fee is about ₹16, leaving a profit of roughly ₹298 per piece — a 37% margin.

Your total investment in the batch was ₹9,400 (20 × ₹450 + ₹400 transport). At ₹799 per piece, after fees and packaging, you'd need to sell about 13 of your 20 sarees to get that ₹9,400 back — the remaining 7 are pure profit, roughly ₹5,960 on the full batch if you sell all 20.

Why transport cost per piece matters

A ₹400 courier charge feels small next to a ₹9,000 stock order, but spread across 20 pieces it's ₹20 each — money that quietly disappears from your margin if you forget to include it. The smaller your batch, the more this per-piece transport cost matters, so always divide it in before you set your price.

How to Break Even on a Batch

1. Add up your total investment — stock cost plus transport for the whole batch.
2. Work out your net cash per sale — selling price minus fees, packaging and shipping.
3. Divide your investment by your net cash per sale, and round up — that's how many pieces you need to sell to recover your money.
4. Every piece after that is pure profit.

Frequently Asked Questions