The margin math most beginner resellers get wrong
Most people starting retail arbitrage focus on finding "deals." That's the wrong first skill.
The actual skill is margin math — and almost nobody teaches it right.
Here's the framework I use before buying anything to flip:
The 3-fee tax you're ignoring
Every resale platform takes a cut before you see a dollar:
eBay: ~13% final value fee + payment processing
StockX: 8-12% depending on seller level, plus shipping
Facebook Marketplace: 0% (this is why it's the best place to start — no fee tax)
If you're pricing a flip based on retail price minus what you paid, you're already down 10-15% before you even ship it.
The rule that actually protects your capital:
Never buy inventory where your target resale price is less than 2x your all-in cost (item + tax + shipping) for anything under $20. For anything over $50, you need at least 50% margin after platform fees — not before.
Why most beginners "flip" for months and stay broke:
They chase volume instead of margin. Ten items at $3 profit each is $30. Two items at $40 profit each is $80 — with a fifth of the listing/shipping work. Margin discipline beats hustle every time in this game.
Where I actually source (no secrets, just consistency):
Clearance endcaps 2 days after markdown, FB Marketplace "moving sale" posts, and open-box returns — in that order of reliability. The apps and "secret websites" people sell courses on are mostly the same public info, repackaged.
If you're starting from zero: pick ONE category, run the math above before every buy, and sell local first (Marketplace/OfferUp) before you touch shipping and platform fees. You'll keep more of what you make.
