Can You Make $1000 per Month Reselling Part Time?
It seems when people are looking to start a side hustle or make a little extra money from home, the number most aim for it $1,000 per month. So, can you make $1,000 per month reselling part time? The answer is YES.
In this post, I’ll go over how to figure out how to make $1000 per month in profit with your reselling business. It can be done as a part-time side hustle or even if you want to start with $1000 per month reselling and eventually turn it into a full time reselling business.
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First, it’s important to note, what does $1000/month in profit look like when you’re selling items online?
That means selling:
- 100 items at $10 profit
- 50 items at $20 profit
- 34 items at $30 profit
- 25 items at $40 profit
- 20 items at $50 profit
But these are profit numbers and how much profit you make is going to vary based on each item you sell unless you just sell one specific item over and over that is the same profit each time. For most resellers, we’re selling different types of items that we find at yard sales, thrift stores, estate sales, etc. so it’s not quite as easy as saying you can sell 25 items at a $40 profit each month.
Is reselling a good way to make money?
Reselling is a great way to make money for anyone who wants to make a little extra money from home. The initial investment isn’t high when you start with items around your house or with items you find for cheap at yard sales and thrift stores. Most of the time you can make double, triple, or even more than what you invested if you’re smart about investing in items that sell well!
How much do you need to sell to make $1,000 a month in profit?
If you’re not a numbers person, you might not like this post because if you’re trying to hit a numbers goal you’re going to have to do some calculations. There’s really no way around it and if you just try to list a million things without looking at the numbers, you’re not being efficient or strategic. But maybe it’ll help you become a numbers person because planning out your profit is a sure way to success!
If you’re a beginner and haven’t started reselling yet, these numbers will be an estimate for you. But if you have started selling, here’s how I figure it out.
Disclaimer: These numbers aren’t perfect and aren’t meant to be. You also have to consider things like paying taxes, but in an effort to keep this simple, this is how I do it.
>> Download my free inventory spreadsheet here that helps you keep track of each item you have listed as well as the cost of goods so you have this info easily organized and handy for when you need it.
Find out your sell through rate
To quickly calculate your sell-through rate, you will need to know:
- how many items you have listed on average over the course of a month
- how many items you’ve sold each month
Sell through rate = items sold / items listed
For example if last month you sold 45 items and you usually have around 150 items listed, you would do:
45/150 = .3 then multiply that by 100 to get a percentage so 30%
Find out your average profit per item
You will also need to know your average profit per item. Some people like to use their average sale price because it’s easier to see what items are selling for than the profit, but if you want to focus on profit you need to know your average profit per item. Hopefully, this is something you’re tracking for each item or you have an idea of it so you can figure out an estimate.
I personally use Vendoo to cross-post items and they have a great analytics feature that shows me my total profit and the number of items I’ve sold so I can calculate my profit per item ($323.83/9 sold items = $35.98 average profit per item)
If you’re not using something like Vendoo, you’ll need to figure out the profit for each item you sold. Just go through your items and figure out the profit for each one. Then add them all together and divide them by the number of items.
For example, let’s make it easy and say you sold 4 items and the profit for each of them were $15, $20, $15, and $30. You would add them together to get $80 then divide that by 4 items and that’s an average profit of $20.
>> Want a little help getting started with reselling? Check out my course, Reseller Roadmap, a step by step guide to starting, streamlining, and scaling your reselling business.
Calculate how to profit $1000 per month reselling
Now that you know your sell through rate and average profit you can do some extra calculations to come up with how much you need to list and sell to make $1000 per month reselling (or whatever your personal goal is).
If you want to profit $1000 per month reselling, then take $1000 and divide it by your average profit per item to find out how many items you need to sell.
Example: $1000 / $20 profit = you need to sell 50 items
So how do you sell 50 items per month? How many items do I need to have listed?
The simple answer is that to increase your profit, you need to do one of the following:
- Increase your sell through rate
- Increase the number of items you have listed
- Increase your profit per item
While it’s as simple as that, it’s not exactly easy to do.
Calculate how many items you need listed
If you keep your sell through rate and profit per item the same and just need to know how many items you need to have listed to hit that $1,000 per month mark, then it’s time to jump back into high school math class. Bare with me because I know this isn’t exactly what you were looking to do when you opened up this blog post.
Here is the equation you’ll use to figure out how much you need to have listed:
# items you need to sell / x = sell through rate / 100
To do this, you multiply the # of items you need to sell by 1000
Then you take that number and divide it by your sell-through rate.
So using the info we previously used as an example:
50 items / x = 30% sell through rate / 100
5,000 / 30 = 166.7
That means you need to list about 167 items if you keep the same sell through rate and average profit.
Yikes, sorry to put you through that. But really you need to keep in mind it’s all about math. If you want to be successful in making a certain amount via reselling you really need to look at the numbers and figure out the best route to get there.
Reselling takes time to build up, but the great thing about it is that pretty much anyone can do it. Some people prefer to spend a lot of time sourcing higher priced items so they have to list, store, and ship less. Some people are limited on how much time they can source so they pick up anything that can get them a decent profit and spend more time listing and shipping more items. It’s really up to you!
>> Want a little help getting started with reselling? Check out my course, Reseller Roadmap, a step by step guide to starting, streamlining, and scaling your reselling business.
