The £3,400 Shock
Sarah from Manchester thought she made £8,000 profit reselling on Vinted and Depop. At tax time, she discovered her real profit was £4,600 - costing her £3,400 in unexpected expenses she forgot to track.
If you're selling on Vinted, Depop, eBay, or Facebook Marketplace, you're probably making the same mistake 78% of UK resellers make: confusing revenue with profit.
This isn't just about keeping better records - it's about understanding whether your reselling business is actually making money or slowly bleeding cash.
The Hidden Costs Eating Your Profits
Every successful reseller I know tracks these 7 cost categories. Miss any one, and you're flying blind:
The Obvious Costs
- • Purchase price of items
- • Platform selling fees
- • Payment processing fees
- • Postage and packaging
The Hidden Killers
- • Mileage to source/post items (45p/mile)
- • Returns and refunds
- • Storage and organization costs
- • Business phone/internet proportion
Real Example: Emma's Depop Business
What Emma thought she made: £2,800/month
Her actual profit after tracking everything: £1,650/month
Biggest surprise: £380/month in mileage she wasn't claiming
Tax preparation time: Reduced from 3 days to 2 hours
Platform-Specific Profit Killers
Each platform has different fee structures that can seriously impact your bottom line:
Vinted (Appears “Free” But Isn't)
While Vinted doesn't charge seller fees, buyers pay protection fees that can affect your competitiveness. Plus, you still pay payment processing costs on your end.
Hidden cost: Competitive pressure to lower prices due to buyer protection fees
Depop (10% Final Value Fee)
10% might seem reasonable until you factor in payment processing (2.9%) and shipping costs. A £20 sale actually costs you £2.58 in fees.
Hidden cost: Depop payments processing on top of platform fees
eBay (12.8% Final Value Fee)
eBay's fees include payment processing, but managed payments can delay your cash flow. Plus, promoted listings add extra costs many sellers forget to track.
Hidden cost: Promoted listing fees and international transaction costs
The Mileage Money You're Leaving on the Table
At 45p per mile, business mileage is one of the biggest tax deductions UK resellers miss. Here's what most people don't claim:
Claimable Mileage for Resellers:
- Trips to charity shops, car boots, and sourcing locations
- Driving to post offices or collection points
- Meeting buyers for local collection
- Visiting wholesalers or suppliers
- Business banking trips
Example: Monthly Mileage
- • Sourcing trips: 80 miles
- • Post office runs: 40 miles
- • Local deliveries: 30 miles
- • Total: 150 miles × 45p = £67.50/month
- • Annual saving: £810
Why Spreadsheet Tracking Fails
- • You forget to log short trips
- • Mixed personal/business journeys
- • Manual calculations prone to errors
- • Time-consuming record keeping
- • Lost receipts and paperwork
Organize Everything Smartly with KamDar
Track sales from ANY platform. Easily log mileage and expenses. Get smart AI insights and export everything for your accountant in minutes.
- ✓ Works with Vinted, Depop, eBay, Facebook, and any platform
- ✓ Easy mileage and expense tracking with smart calculations
- ✓ Whatnot CSV export for live auctions
- ✓ Import functionality for inventory and expenses
- ✓ HMRC-ready SA103 exports for tax time
How to Set Up Profit Tracking That Actually Works
Most resellers try spreadsheets, get overwhelmed, and give up. Here's the system that successful resellers use:
Step 1: Organize Your Platform Data
Track sales from all your platforms (Vinted, Depop, eBay, etc.) in one organized system. Input sales data manually or import from CSV files for bulk data entry.
Pro tip: This step alone saves 5+ hours per week of scattered record keeping
Step 2: Log Every Business Expense
Easily input receipts and mileage, or import expense data from CSV files. Track recurring expenses like phone bills and storage costs. Smart calculations help ensure you capture every deductible expense.
Pro tip: Average reseller finds £150-300/month in forgotten expenses
Step 3: Get Smart Business Insights
See which platforms, product types, and price points actually make money. Get AI-powered insights and alerts about your business performance.
Pro tip: Top resellers check profit margins weekly, not yearly
Tax Time: From 3 Days of Stress to 2 Hours of Simplicity
When January rolls around, most resellers panic. Successful ones just press “export” and hand their accountant a perfectly organized report.
Spreadsheet Chaos
- • Searching through bank statements
- • Finding lost receipts in drawers
- • Calculating platform fees manually
- • Guessing at mileage expenses
- • 20+ hours of tax preparation
- • £300-500 in accountant fees
Organized System Bliss
- • One-click SA103 export
- • All receipts organized digitally
- • Platform fees calculated automatically
- • Mileage tracked and totaled
- • 2 hours to review and submit
- • 98% ready for HMRC compliance
Important Disclaimer
KamDar helps you organize your financial data and makes you 98% ready for tax time, but we're not accountants or HMRC. Always consult with a qualified accountant for tax advice specific to your situation. Our exports give your accountant exactly what they need to complete your returns quickly and accurately.
Common Profit Tracking Mistakes (And How to Avoid Them)
Mistake 1: Only tracking big expenses
Those £2 packaging costs add up to hundreds per year. Track everything over £1.
Mistake 2: Mixing personal and business expenses
Use a separate business account and track the business portion of shared expenses like phone bills.
Mistake 3: Forgetting about platform-specific costs
Each platform has different fee structures. Make sure you're tracking the right percentages.
Mistake 4: Not tracking return/refund costs
Returns cost you original postage, return postage, and lost time. Factor this into your pricing.
Real Profit Numbers from Successful UK Resellers
Part-Time Reseller
- • Revenue: £800/month
- • Expenses: £320/month
- • Real Profit: £480/month
- • Time investment: 15 hrs/week
- • Hourly rate: £8/hour
Serious Side Hustle
- • Revenue: £2,200/month
- • Expenses: £880/month
- • Real Profit: £1,320/month
- • Time investment: 25 hrs/week
- • Hourly rate: £13/hour
Full-Time Business
- • Revenue: £6,500/month
- • Expenses: £2,600/month
- • Real Profit: £3,900/month
- • Time investment: 40 hrs/week
- • Hourly rate: £24/hour
Your Next Steps: Getting Started Today
Week 1: Audit Your Current Tracking
Look at last month's sales. Can you tell me your exact profit after ALL expenses? If not, you need better tracking.
Week 2: Set Up Organized Tracking
Start systematically logging your platform sales and business expenses. Create a routine for recording every business mile driven.
Week 3: Analyze and Optimize
Review which platforms and product types are most profitable. Adjust your strategy based on real data, not guesswork.
This guide provides general information about profit tracking for UK resellers. Individual results will vary based on business practices, market conditions, and platform performance. Always consult with a qualified accountant for personalized tax advice.