How to calculate reseller sell-through rate and batch profit

Reseller batch profit equals contribution from sold units minus the cost consumed by the entire sourced cohort. The break-even sell-through rate divides cohort cost by units sourced times contribution per sale. Unsold units stay in the denominator because buying them tied up cash and work.

Reseller margin worksheet showing a $28 spread, $3.43 earned per hour, and 18 of 40 items unsold.

Use the formula

Sell-through rate: Units sold / Units sourced
Batch profit: Units sold x Contribution per sale - Cohort cost
Break-even sell-through: Cohort cost / (Units sourced x Contribution per sale)

Worked example

The verified example sources 40 items and records 22 sales in the measurement window. Eighteen items remain unsold.

Line	Result	Meaning
Units sourced	40	The full cohort
Units sold	22	Sales in the measurement window
Sell-through	55%	22 / 40
Unsold units	18	Still tying up cost and storage
Apparent spread	$28 per item	Sale price less acquisition cost before other costs
Modeled batch profit	$79.97	After the full cohort model
Modeled hourly return	$3.43	Profit divided by total modeled work time

Repeatable method

Define a cohort and a measurement window.
Record every sourced unit, not only units that sold.
Calculate net contribution after fees, shipping, packaging, and return risk.
Add sourcing, overhead, and fixed labor to cohort cost.
Compare actual sell-through with break-even and target-hourly floors.

Questions and answers

Is unsold stock a loss?: Not automatically. It is still inventory, but its cost and tied-up cash belong in the cohort view until it sells, is written down, or is removed.
Can sell-through exceed break-even and still pay poorly?: Yes. Break-even covers modeled cost. A target hourly rate requires a higher floor when labor is included.
Which time window should be used?: Use one suited to the category and sourcing cycle, state it clearly, and compare cohorts on the same basis.

Sources

Internal Revenue Service: Publication 334Inventory and cost of goods sold structure for businesses that buy goods for resale.
U.S. Small Business Administration: Break-even pointBreak-even as fixed costs divided by contribution margin.

This is general business calculation information, not accounting, tax, financial, or platform advice. Confirm current fee and inventory rules for your business.