Basic Reseller Terms to Know

The world of retail math can seem never ending and confusing; so I am going to break down the absolute most important reseller terms and numbers that you need to know!

Below you will find some very basic reseller terminology that you have probably heard thrown around in the community, as well as why you should be paying attention to these figures, and how they relate to your business.

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The 4 Most Important Reseller Terms

1.COG or Cost of Goods Purchased: This is what you have paid for an item, including any tax, shipping and/or miscellaenous charges you have paid. It is important to know the dollar figure for which you own the item, to ensure you are making a proper profit later.

**Note- many sellers do this differently. Some sellers break it down to the actual penny that they paid for an item, while others work out an average cost per item for a particular sourcing trip. This is entirely up to you and can vary depending on how we each “source” our items.

2.Gross Sales: Simply put; this is what the customer pays. If you sell a dress to a customer for $25, the gross sale is $25.

3.Net Sales: Gross Sales minus Fees. Technically speaking, this is what the selling platform will pay you for the item you have sold. That dress you sold for $25 also has a 20% commission on Poshmark. Therefore, Your Net Sale will be $20.

4.Net Profit: Net Sales minus Cost of Goods. This is your final profit for your sale. Your Net Sale on that dress was $20, and your Cost of Goods was $5.30 with tax. Your Net Profit will be $14.70.


I hope I haven’t lost you yet! There are a lot of figures to look at in your business, but the above mentioned 4 are the absolute most important.

I often see resellers throwing these terms around on social media, for instance, “Hey, I had a $500 weekend”. Well, was it $500 gross sales or $500 net sales? Because those two numbers can be GREATLY different. Don’t get caught up in other peoples numbers, just know your own and work to improve them week over week.

Can’t wait to dive into more.

xx, Shari

Haven’t joined Poshmark yet? Join with my code SMTHNGPRETTYBTQ and get $5!

Want to read more reseller tips? See all blog posts here.


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