Calculate the true item contribution
See this course’s project requirements
A fictional resale feasibility file with an item screen, cost model, comparable sales, listing brief, return scenario and go-or-no-go decision.
Keep your working files in your own notebook or software. Save a private description, checklist, and work link in My Proof.
What to include
- A resale-item screen with exclusions and verification needs.
- An item cost sheet including fees, shipping and time. A comparable-sale note with a justified test price.
- An unpublished condition listing and package-measurement brief.
- A return scenario showing contribution, loss and cash tied up.
- A resale feasibility decision supported by the full cost and return model.
Review and revise
Use these criteria to check your work and choose what to improve.
- Calculations reconcile to the supplied records, with units and dates labeled.
- Assumptions and missing information are visible, including the changed scenario.
- The recommendation follows the evidence and explains an important limitation.
- The six lesson outputs form a usable handoff that another learner can check.
Want more background?
The idea in everyday life
T1 practice tote sells for $25 including shipping. Costs: acquisition $8, cleaning $1, packaging $1, shipping $6. Invented marketplace fee is 10% of the total price plus $0.50. Labor takes 20 minutes, valued for comparison at $12 per hour. Tax and fixed overhead are excluded.
The sale price is not the amount you keep. Count acquisition, preparation, delivery and fees.
Calculate the true item contribution — worked practice
The sale price is not the amount you keep. Count acquisition, preparation, delivery and fees.
T1 practice tote sells for $25 including shipping. Costs: acquisition $8, cleaning $1, packaging $1, shipping $6. Invented marketplace fee is 10% of the total price plus $0.50. Labor takes 20 minutes, valued for comparison at $12 per hour. Tax and fixed overhead are excluded.
1. Calculate fee
Apply 10% to $25 and add $0.50.
You should see: Fee is $3.
Fixed and percentage fees both matter.
2. Total cash costs
Add 8 + 1 + 1 + 6 + 3.
You should see: Cash costs are $19.
Include shipping even when called free to the buyer.
3. Find contribution
Subtract $19 from $25.
You should see: Contribution is $6 before labor, tax and overhead.
Revenue is not profit.
4. Value time
Convert 20 minutes to one-third hour and multiply by $12.
You should see: Time value $4; contribution after this time allowance $2.
A cash margin can hide a poor return on time.
What to finish
An item cost sheet including fees, shipping and time.
Watch for this
Ignoring shipping because the listing says free shipping.
How can I tell I understand it?
Explain your calculation or classification and reproduce the changed case without copying the worked result.
Quick knowledge check
Answer all 3 questions. Get at least 2 right and the lesson completes automatically.
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Answer all 3 questions above and get at least 2 right. You can review the explanations and try again.
Go to the knowledge checkOptional course overview video · same video as Lesson 1
How to calculate Gross Profit (aka Gross Margin)
From Edspira. Watch here or open it on YouTube .
Optional course overview. Follow the written steps below at your own pace.Tools, templates, and lesson sources
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Sources and further reading
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Source & access notes · checked 2026-09-12
Inspected package measurement, preparation and postage inputs; no current rate is copied.
Access: Public page inspected without a sign-in; linked services may have separate requirements.
Reuse: Link to the original. Free reading does not imply permission to reproduce the page; lessons and fixtures here are original.
Source & access notes · checked 2026-09-12
Inspected fee categories and bases. The exercise uses invented fees, not an eBay rate quote.
Access: Public page inspected without a sign-in; linked services may have separate requirements.
Reuse: Link to the original. Free reading does not imply permission to reproduce the page; lessons and fixtures here are original.
Source & access notes · checked 2026-09-12
Inspected the Calculating Gross Profit link to 4PvUFaeHdIg. YouTube oEmbed confirms the exact title and Edspira channel; used only as a merchandise-cost introduction.
Access: Public page inspected without a sign-in; linked services may have separate requirements.
Reuse: Link to the original. Free reading does not imply permission to reproduce the page; lessons and fixtures here are original.
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