Most resellers have a sense of whether a lot "went well." But a feeling isn't a number — and without a number, you can't improve your buying strategy, compare one lot to another, or know which categories to double down on.
ROI (return on investment) is the number that settles it. Here's the complete way to calculate it for a liquidation lot.
The Formula
A 200% ROI means you made $2 in profit for every $1 spent. A 3× return (which is common language in liquidation reselling) is equivalent to 200% ROI — your cost came back plus twice more.
What Goes Into Total Cost
As with cost per unit, the most common mistake is undercounting total cost. Every dollar you spend to acquire and move inventory counts:
- Lot purchase price (hammer price at auction or invoice amount)
- Buyer's premium (if purchased at auction)
- Freight and shipping to your location
- Platform or marketplace fees paid to sell (eBay final value fees, etc.)
- Supplies consumed (labels, boxes, tape used specifically for this lot)
Many resellers exclude platform fees and supplies, which overstates their actual ROI. If eBay took 13% on every sale, that comes out of your return — count it.
What Counts as Revenue
Only actual sales. The value of inventory still sitting in your warehouse is not revenue — it's an asset that hasn't converted yet. Calculate ROI on a lot only when it's fully sold out, or use partial ROI with a realistic estimated value for remaining items.
A Worked Example
| Cost Component | Amount |
|---|---|
| Auction price | $1,400.00 |
| Buyer's premium (18%) | $252.00 |
| Freight | $290.00 |
| eBay fees on sold items (~13%) | $183.95 |
| Total cost | $2,125.95 |
| Revenue | Amount |
|---|---|
| Sales from 38 of 43 items | $5,840.00 |
| Estimated value of 5 unsold items | $210.00 |
| Total revenue (actual + estimated) | $6,050.00 |
| Result | Value |
|---|---|
| Gross profit | $3,924.05 |
| ROI | 184.6% (2.85×) |
What Good ROI Looks Like
Experienced resellers typically target 2–4× on most lots. Hitting 4× or more consistently usually means you've found a reliable source in a low-competition category — that's worth protecting and scaling.
Why You Should Track ROI Per Lot, Not in Aggregate
Averaging ROI across all your lots hides what's actually happening. A 3× average could mean every lot returns 3× — or it could mean half your lots do 5× while the other half barely break even, and you have no idea which sources are responsible for which outcome.
Track ROI per lot, per source, and per category. After 10–15 lots, patterns emerge:
- Some sources consistently grade accurately → reliable ROI
- Some categories consistently turn fast → prioritize in buying
- Some lot types consistently disappoint → stop buying them
Track lot ROI automatically
StockDrive Pro calculates your actual ROI on every lot as items sell — no spreadsheet, no manual math. See which lots, sources, and categories earn you the most.
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