Every reseller has a tax horror story. Maybe it’s the seller who made $47,000 in eBay sales but couldn’t prove a single cost basis, leaving them to pay taxes on the full amount instead of just their profit. Or the flipper who bought a $200 lot at an estate sale, sold individual items for $1,800 total, but had no records to show what they paid—so the IRS treated the entire $1,800 as income. Or the more common (and equally painful) story: the reseller who thought they were making $3,000/month profit, but after properly tracking fees, shipping, supplies, and sourcing costs, realized the real number was $1,100.
Inventory tracking isn’t sexy. Nobody gets into reselling because they love spreadsheets. But the resellers who build wealth—the ones who turn a side hustle into a full-time income—all have one thing in common: they know their numbers.
This guide covers everything from a basic spreadsheet setup for someone selling 10 items a month to enterprise-level systems for high-volume sellers moving hundreds of items weekly. We’ll walk through SKU systems, photo organization, COGS tracking methods, physical organization, and when it’s time to graduate from spreadsheets to dedicated software.
Why Inventory Tracking Matters More Than You Think
The Tax Bill Surprise
If you sell on eBay, Poshmark, Mercari, Amazon, or any other marketplace, those platforms report your gross sales to the IRS on a 1099-K. In 2026, the reporting threshold is $600—meaning virtually every active reseller gets one.
Here’s why tracking matters: without documentation of your cost basis (what you paid for each item), the IRS may treat your entire sales revenue as income.
Example without tracking:
- You sold $35,000 worth of items on eBay in 2025
- You spent $12,000 on inventory, $3,500 on shipping, $2,800 on fees, and $1,200 on supplies
- Your actual profit: $15,500
- Without records, the IRS sees: $35,000 in income
- Tax difference (at 25% marginal rate): $4,875 in unnecessary taxes
That $4,875 pays for a lot of inventory. Check our 1099-K tax guide and tax deduction calculator to understand everything you can deduct.
Know Your Real Profit Per Item
Most resellers dramatically overestimate their profits because they forget to account for all costs. A proper tracking system reveals your true net profit per item, factoring in:
- Purchase price (cost basis / COGS)
- Platform selling fees (eBay’s 13.25%, Poshmark’s 20%, Mercari’s 10%)
- Shipping costs (actual cost if you paid, or the portion from buyer-paid shipping that didn’t cover actual cost)
- Shipping supplies (boxes, tape, polymailers, bubble wrap)
- Mileage to source (if you drove to get it)
- Cleaning/repair supplies
- Return shipping (if applicable)
Use our platform fee comparison tool and fee calculator to quickly figure out what each platform actually costs you per sale.
Make Better Sourcing Decisions
When you track inventory properly, you start seeing patterns that change how you source:
- Category analysis: “I make 65% margins on vintage denim but only 22% on electronics after returns”
- Source analysis: “Goodwill purchases average $8.50 profit per item, but estate sales average $24.00”
- Time analysis: “Items sourced in December take 45 days to sell vs 18 days for items sourced in March”
- Platform analysis: “My sell-through on Poshmark is 3x faster than eBay for women’s clothing”
This data is gold. Without it, you’re guessing. With it, you’re allocating your sourcing budget intelligently. Find what’s worth flipping before you buy with our flip profit calculator.
💡 Pro Tip: Track your “hourly rate” for each sourcing channel. If you spend 3 hours at garage sales and buy $200 worth of inventory that yields $600 in profit, your effective hourly rate is $133/hour. Compare that to spending 4 hours on online arbitrage for $300 profit ($75/hour). This data tells you where to spend your limited sourcing time.
The Spreadsheet System: Start Here
For most resellers doing under 100 items per month, a Google Sheets or Excel spreadsheet is the best starting point. It’s free, flexible, and forces you to understand your data before outsourcing it to software.
Essential Column Headers
Here’s the complete column setup for a reseller inventory spreadsheet. Copy these headers exactly:
| Column | Purpose | Example |
|---|---|---|
| SKU | Unique item identifier | GW-0219-DENIM-001 |
| Date Acquired | When you bought/sourced it | 2026-02-15 |
| Source | Where you got it | Goodwill on Main St |
| Source Type | Category of source | Thrift Store |
| Item Description | What it is | Levi’s 501 Original Fit Jeans 32x30 |
| Category | Item type | Men’s Denim |
| Brand | Brand name | Levi’s |
| Condition | Item condition | Pre-owned - Excellent |
| Cost (COGS) | What you paid | $6.99 |
| Additional Costs | Cleaning, repair, etc. | $2.00 |
| Total Cost | Cost + Additional | $8.99 |
| SKU Label Location | Where item is stored | Bin A3 |
| Date Listed | When you listed it | 2026-02-16 |
| Platform(s) Listed | Where it’s listed | eBay, Poshmark |
| Listing Price | Current asking price | $39.99 |
| Date Sold | When it sold | 2026-02-28 |
| Sale Price | Actual sale price | $34.99 |
| Platform Sold | Where it sold | eBay |
| Platform Fees | Selling fees | $4.63 |
| Shipping Cost | Actual shipping cost | $5.75 |
| Shipping Charged | What buyer paid for shipping | $0 (free shipping) |
| Net Revenue | Sale - Fees - Shipping | $24.61 |
| Net Profit | Net Revenue - Total Cost | $15.62 |
| Profit Margin % | Net Profit / Sale Price | 44.6% |
| Days to Sell | Date Sold - Date Listed | 12 |
| Status | Current status | Sold / Listed / Unlisted / Returned |
| Notes | Anything relevant | “Buyer loved it, messaged for more” |
That’s 26 columns. It looks like a lot, but most entries take under 2 minutes to fill in, and many columns auto-calculate.
Setting Up Formulas
Here are the key formulas that make the spreadsheet powerful (assuming row 2 is your first data row in Google Sheets):
Total Cost (Column K):
=I2+J2
Net Revenue (Column T):
=Q2-R2-(S2-T2)
Actually, let’s simplify. Net Revenue = Sale Price - Platform Fees - (Shipping Cost - Shipping Charged to Buyer):
=Q2-R2-S2+T2
Net Profit (Column U):
=T2-K2
Profit Margin % (Column V):
=IF(Q2>0, U2/Q2, "")
Days to Sell (Column W):
=IF(P2<>"", P2-M2, IF(M2<>"", TODAY()-M2, ""))
This gives you days to sell for sold items, and days listed for active items.
Dashboard Summary Tab
Create a second tab called “Dashboard” with these summary formulas pulling from your inventory sheet:
| Metric | Formula |
|---|---|
| Total Items Acquired | =COUNTA(Inventory!A2:A) |
| Total Items Sold | =COUNTIF(Inventory!X2:X, "Sold") |
| Total Items Active | =COUNTIF(Inventory!X2:X, "Listed") |
| Total Revenue (Gross) | =SUMIF(Inventory!X2:X, "Sold", Inventory!Q2:Q) |
| Total COGS | =SUMIF(Inventory!X2:X, "Sold", Inventory!K2:K) |
| Total Fees Paid | =SUMIF(Inventory!X2:X, "Sold", Inventory!R2:R) |
| Total Shipping Costs | =SUMIF(Inventory!X2:X, "Sold", Inventory!S2:S) |
| Total Net Profit | =SUMIF(Inventory!X2:X, "Sold", Inventory!U2:U) |
| Average Profit Per Item | =AVERAGEIF(Inventory!X2:X, "Sold", Inventory!U2:U) |
| Average Days to Sell | =AVERAGEIF(Inventory!X2:X, "Sold", Inventory!W2:W) |
| Average Profit Margin | =AVERAGEIF(Inventory!X2:X, "Sold", Inventory!V2:V) |
| Unsold Inventory Value (Cost) | =SUMIF(Inventory!X2:X, "Listed", Inventory!K2:K) |
| Sell-Through Rate | =COUNTIF(X2:X,"Sold")/COUNTA(A2:A) |
💡 Pro Tip: Add conditional formatting to your spreadsheet. Color-code rows by status: green for sold, yellow for listed, red for items listed over 90 days (dead inventory). In Google Sheets: Format → Conditional formatting → Custom formula: =$W2>90 with a red fill.
Monthly Summary Tab
Create a third tab that summarizes each month’s performance:
| Month | Items Bought | Items Sold | Revenue | COGS | Net Profit | Avg Margin | Avg Days to Sell |
|---|---|---|---|---|---|---|---|
| Jan 2026 | 45 | 38 | $2,847 | $456 | $1,592 | 55.9% | 22 |
| Feb 2026 | 52 | 41 | $3,215 | $520 | $1,823 | 56.7% | 19 |
These monthly snapshots are invaluable for seeing growth trends and seasonality patterns. Review your monthly numbers alongside data from our inventory turnover calculator to ensure your stock isn’t aging.
SKU Systems for Resellers
A SKU (Stock Keeping Unit) is a unique identifier for each item in your inventory. For resellers, SKUs serve three critical functions:
- Physical location tracking — Find any item in your storage in under 30 seconds
- Cross-platform identification — When item X sells on eBay, you know to delist item X from Poshmark
- Record keeping — Link each sale to its cost basis for tax purposes
The Location-Date-Category Format
The most popular SKU system for resellers uses this structure:
[Source]-[Date]-[Category]-[Sequential Number]
Examples:
GW-0219-DENIM-001= Goodwill, February 19, Denim, first itemES-0215-ELEC-003= Estate Sale, February 15, Electronics, third itemOA-0220-SHOE-012= Online Arbitrage, February 20, Shoes, twelfth item
Source Codes
Create a consistent set of source abbreviations:
| Code | Source |
|---|---|
| GW | Goodwill / Thrift Store |
| ES | Estate Sale |
| GS | Garage/Yard Sale |
| OA | Online Arbitrage |
| WH | Wholesale |
| LP | Liquidation Pallet |
| CS | Consignment Shop |
| FB | Facebook Marketplace (sourced) |
| RG | Retail (clearance) |
| DO | Donated / Personal Closet |
Category Codes
| Code | Category |
|---|---|
| TOPS | Shirts, Blouses, T-shirts |
| BTMS | Pants, Shorts, Skirts |
| DNMM | Denim |
| OUTR | Outerwear, Jackets, Coats |
| SHOE | Footwear |
| ACCS | Accessories (bags, belts, hats) |
| ELEC | Electronics |
| HOME | Home goods |
| TOYS | Toys & Games |
| BOOK | Books & Media |
| SPRT | Sports & Outdoor |
| COLL | Collectibles |
| JWLY | Jewelry & Watches |
| VNTG | Vintage (non-clothing) |
You can generate professional SKUs instantly with our reseller SKU generator. It follows this format and keeps your numbering consistent.
💡 Pro Tip: Write your SKU on a small piece of masking tape and attach it to the item (or its storage bag/bin). When the item sells, you can instantly confirm which exact item it was, where you got it, and what you paid. This is especially important for similar items—like five pairs of Levi’s 501s sourced from different locations at different prices.
Simplified SKU for Low-Volume Sellers
If you’re selling under 30 items/month, even simpler works:
[Year][Month]-[Sequential]
2602-001= February 2026, first item2602-002= February 2026, second item
Just make sure it’s unique and consistent. You can always upgrade your system later.
Photo Organization Workflow
Photos are a critical part of inventory tracking that many resellers overlook. When you have 200 items listed, finding the right photos for a customer question or relisting can waste serious time without a system.
The Photography-to-Listing Pipeline
Step 1: Photograph in Batches
Photograph items in batches rather than one at a time. Set aside 1–2 hours per week as your photography session.
- Set up your photography station with consistent lighting
- Photograph 15–25 items per session
- Take all angles for each item before moving on: front, back, label, defects, details
Step 2: Name Photos by SKU
After photographing, rename the photo folder for each item using the SKU:
Photos/
├── GW-0219-DENIM-001/
│ ├── front.jpg
│ ├── back.jpg
│ ├── label.jpg
│ └── detail-1.jpg
├── GW-0219-DENIM-002/
│ ├── front.jpg
│ ├── back.jpg
│ ├── label.jpg
│ └── defect-1.jpg
Step 3: Cloud Backup
Use Google Photos, iCloud, Dropbox, or Google Drive to back up your photo library. If your phone dies, you don’t want to lose photos for 200 active listings.
Google Photos Organization (Free Tier)
Google Photos’ free tier (with a Google One plan) offers a great system for reseller photos:
- Create a shared album called “Inventory [Month] [Year]”
- Upload batch photos to the relevant album
- Use Google Photos’ search to find items later (“blue denim jacket” will actually find those photos)
💡 Pro Tip: Take one photo of the SKU label/tag you attached to each item alongside the first product photo. This creates a visual link between the physical item and its digital record. When an item sells on one platform and you need to delist from another, you can search your photos for the SKU tag.
Inventory Management Apps for Resellers
When spreadsheets start feeling limiting—usually around 100+ active listings or when you’re crosslisting on 3+ platforms—it’s time to consider dedicated inventory management software.
Dedicated Reseller Apps
| App | Price | Best For | Key Features |
|---|---|---|---|
| Vendoo | $0–$24.99/mo | Crosslisters (5+ platforms) | Crosslisting, inventory tracking, analytics |
| List Perfectly | $0–$49/mo | High-volume crosslisters | Bulk crosslisting, templates, analytics |
| FlipStar | $9.99/mo | Reseller analytics | Profit tracking, COGS, tax reports |
| Sortly | $0–$49/mo | Physical inventory | Barcode scanning, bin locations, photos |
| AirTable | $0–$20/seat/mo | Custom workflows | Fully customizable, API integrations |
| Notion | $0–$10/mo | All-in-one workspace | Templates, databases, notes combined |
Vendoo: Best for Most Resellers
Vendoo is the most popular inventory management tool specifically built for resellers. At $0 (free tier: 25 crosslists/month) to $24.99/month (unlimited), it offers:
- One-click crosslisting to eBay, Poshmark, Mercari, Depop, Kidizen, Grailed, Facebook, and more
- Inventory tracking with cost basis, sale price, and profit calculations
- Sales analytics and monthly reports
- CSV export for tax preparation
The ROI math is straightforward: if crosslisting to additional platforms generates even 5 additional sales/month at $15 average profit, that’s $75 in extra profit vs $24.99/month cost.
AirTable: Best for Custom Workflows
AirTable is essentially a spreadsheet with superpowers. You get:
- Custom views (Kanban boards, calendars, galleries)
- Photo attachments per record
- Barcode scanning (mobile app)
- Automated workflows (send email when item listed for X days)
- Form views for quick data entry
The free tier (1,000 records, 1GB attachments) works for many resellers. Power users who want automations need the $20/month tier.
When to Switch from Spreadsheets to Software
Consider switching when:
- ❌ Your spreadsheet takes more than 5 seconds to load
- ❌ You’re spending more than 30 minutes/day on data entry
- ❌ You’re crosslisting manually on 3+ platforms
- ❌ You have more than 200 active listings
- ❌ You’ve had double-sells (item sold on two platforms simultaneously)
- ❌ You can’t quickly answer “what’s my profit margin on electronics?”
If none of those apply, stick with your spreadsheet. Don’t fix what isn’t broken.
Compare the platforms you’re selling on using our crosslisting platforms comparison tool to see where your items may sell faster.
COGS Tracking: FIFO vs. LIFO
COGS (Cost of Goods Sold) is the total cost of acquiring the items you sold during the year. It’s your largest tax deduction and directly reduces your taxable income.
FIFO (First In, First Out)
FIFO assumes you sell the oldest items first. This is the most common and IRS-preferred method for resellers.
Example: You buy 3 similar flannel shirts on different dates:
- Shirt A: Purchased January 5 for $4
- Shirt B: Purchased January 20 for $6
- Shirt C: Purchased February 10 for $8
You sell one flannel shirt on February 15 for $25. Under FIFO, you assign Shirt A’s cost ($4) as the COGS, since it was purchased first.
Your taxable profit: $25 - $4 = $21
LIFO (Last In, First Out)
LIFO assumes you sell the newest items first. Using our flannel example, you’d assign Shirt C’s cost ($8) to the February 15 sale.
Your taxable profit: $25 - $8 = $17
Which Should Resellers Use?
FIFO is recommended for most resellers because:
- It’s simpler to implement and explain to the IRS
- It matches the natural flow of most reselling businesses (you list older items first)
- It’s the IRS default method
- Switching methods requires IRS approval
The practical difference is minimal for most resellers. What matters far more is actually tracking your costs at all rather than worrying about which method is “optimal.”
💡 Pro Tip: For lot purchases (you bought 20 items for $100 at an estate sale), divide the total cost evenly: $100 ÷ 20 = $5 COGS per item. Alternatively, if some items are clearly more valuable, allocate proportionally: a vintage Pyrex set worth ~$40 and 19 other items worth ~$3 each gets a $40 COGS for the Pyrex and ~$3.16 each for the rest. Document your allocation method and be consistent.
Review our reseller bookkeeping basics guide for the complete picture on financial tracking, and use our ROI calculator to quickly assess deals before you buy.
Physical Organization: Bins, Shelves, and Labels
Your digital tracking system is only as good as your physical organization. If you can’t find item GW-0219-DENIM-001 in your storage within 30 seconds, your SKU system isn’t doing its job.
The Bin System
The most popular physical organization method for resellers:
Step 1: Get Consistent Storage
- Clear plastic bins (Sterilite 66-quart are the reseller standard: stackable, affordable, durable)
- Wire shelving units (Seville Classics or Amazon Basics 5-tier)
- Banker’s boxes for smaller items
Step 2: Label Everything
- Label each bin with a letter-number code: A1, A2, B1, B2, etc.
- Shelf A = bins A1–A4
- Shelf B = bins B1–B4
Step 3: Organize by Category (Not Source)
- Bin A1: Men’s Tops
- Bin A2: Men’s Bottoms
- Bin A3: Men’s Denim
- Bin A4: Men’s Outerwear
- Bin B1: Women’s Tops
- Bin B2: Women’s Bottoms
- Bin C1: Electronics
- Bin C2: Home Goods
- Bin D1: Shoes (individually bagged)
Step 4: Record the Location In your spreadsheet or app, record the bin location for each item. When it sells, you go straight to Bin A3, grab the item, and ship it.
Shoe and Accessory Storage
Shoes and accessories need special handling:
- Shoes: Individual clear bags or original boxes, stored on shoe racks or in bins. Label bags with SKU on masking tape
- Jewelry: Tackle boxes or craft organizer boxes with dividers, each compartment labeled with SKU
- Handbags: Stuff with tissue paper, store in dust bags, on a shelf or in oversized bins
- Hats: Stack 3–4 max to avoid crushing, store in tall bins
The “Staging” Area Workflow
Set up three zones in your workspace:
- Intake Zone: Items waiting to be cleaned, photographed, and listed (your “death pile” prevention area)
- Active Inventory Zone: Items that are photographed, listed, and organized in bins
- Ship Station: Items that have sold and need to be packed and shipped
Items should flow from Zone 1 → Zone 2 → Zone 3. If Zone 1 has more than 2 weeks of items in it, you’re sourcing faster than you can process. For more on managing this workflow and preventing the death pile, read our guide to reselling from home.
💡 Pro Tip: Set a personal rule: nothing enters Zone 2 (Active Inventory) until it’s photographed, listed on at least one platform, and entered into your tracking system. This prevents the death pile from growing and ensures every item has a cost basis recorded from day one.
Lot Tracking for Pallets and Wholesale
If you source from liquidation pallets, wholesale lots, or large estate sale purchases, you need a system to track the overall lot in addition to individual items.
Lot-Level Tracking
Create a separate “Lots” tab in your spreadsheet:
| Lot # | Date Acquired | Source | Total Cost | Total Items | Avg Cost/Item | Items Sold | Items Listed | Items Donated | Lot Revenue | Lot Profit | ROI |
|---|---|---|---|---|---|---|---|---|---|---|---|
| LOT-001 | 2026-01-15 | Liquidation.com | $350 | 42 | $8.33 | 28 | 10 | 4 | $1,240 | $652 | 186% |
| LOT-002 | 2026-02-01 | Estate Sale | $200 | 35 | $5.71 | 22 | 8 | 5 | $890 | $530 | 265% |
Allocating Lot Costs to Individual Items
When you buy a pallet of 42 items for $350, there are two approaches:
Even Allocation: $350 ÷ 42 items = $8.33 per item
This is simple but ignores that some items in the lot are clearly more valuable than others.
Proportional Allocation (Recommended for Larger Lots):
- Sort items into value tiers after unboxing
- Estimate approximate retail/resale value for each item
- Assign COGS proportional to value
Example for a $350, 42-item pallet:
- 5 premium items (~$50 resale each = $250 total value)
- 15 mid-tier items (~$20 resale each = $300 total value)
- 12 low-tier items (~$10 resale each = $120 total value)
- 10 unsellable items ($0 value)
Total estimated value: $670
COGS allocation:
- Premium items: ($250/$670) × $350 = $130.60 = $26.12 each
- Mid-tier items: ($300/$670) × $350 = $156.72 = $10.45 each
- Low-tier items: ($120/$670) × $350 = $62.69 = $5.22 each
- Unsellable: $0 COGS (write off as loss or donate for tax deduction)
This method gives you much more accurate per-item profitability data. Use our break-even price calculator to figure out the minimum listing price for each item after accounting for allocated costs and platform fees.
Dead Inventory: The 90-Day Rule
Dead inventory—items that sit unsold for extended periods—is the silent profit killer in reselling. It ties up your capital, occupies storage space, and slowly depreciates.
The 90-Day Rule
Implement a strict review cycle for all inventory:
Day 0–30: List at target price based on sold comps. Let the market work.
Day 31–60: If unsold, take these actions:
- Lower price by 10–15%
- Refresh listing (new photos, revised title using our listing title optimizer)
- Cross-list to any platforms where it isn’t listed yet
- Consider bundling with similar unsold items
Day 61–90: If still unsold:
- Lower price by another 15–20%
- Post on Facebook Marketplace for local pickup
- Consider auction format (eBay 7-day)
- Offer to bulk buyers or other resellers
Day 91+: Decision time:
- Liquidate: Lot with other dead inventory and sell as a bundle at 50–70% off
- Donate: Get a tax deduction (fair market value for items valued under $250, must itemize)
- Discard: Some items aren’t worth the shelf space
Tracking Dead Inventory in Your Spreadsheet
Add a conditional formatting rule that highlights your “Days to Sell” column:
- Green: 0–30 days
- Yellow: 31–60 days
- Orange: 61–90 days
- Red: 91+ days
Sort by “Days Listed” monthly and force yourself to address every red item. The goal is to keep less than 10% of your active inventory past the 90-day mark.
Check brand-specific resale data using our brand resale value index before sourcing to avoid accumulating dead inventory in the first place.
💡 Pro Tip: Track your “dead inventory rate” monthly: (Items listed 90+ days ÷ Total active listings) × 100. If this exceeds 15–20%, you have a sourcing problem (buying items that don’t sell), a pricing problem (listing too high), or a listing quality problem (poor photos, weak titles). Use our condition grade impact calculator to price items more accurately based on their actual condition.
Barcode Scanning: When It Makes Sense
Barcode scanning can speed up inventory intake significantly—but it’s not useful for every reseller.
When Barcode Scanning Works
- Retail arbitrage / Online arbitrage — Scanning UPC barcodes to look up Amazon/eBay prices instantly
- Book reselling — ISBN scanning is essential for book flippers
- New-in-box products — Factory barcodes make cataloging fast
- High-volume sellers (100+ items/month) — Time savings compound significantly
When Barcode Scanning Doesn’t Help
- Thrift store clothing — No barcodes on used clothing; you’re relying on brand/label knowledge
- Vintage items — Unique items without UPC codes
- Estate sale finds — Rarely have scannable codes
- One-of-a-kind collectibles — No barcode database entry exists
Barcode Scanning Options
| Tool | Cost | Best For |
|---|---|---|
| ScoutIQ | $14.99/mo | Amazon book scanning |
| eBay app | Free | General eBay price lookup |
| Amazon Seller app | Free | Amazon FBA scanning |
| Sortly | $0–$49/mo | Physical inventory management |
| Custom SKU barcodes | ~$0.01/label | Creating your own barcode system |
Creating Your Own Barcode System
For organized high-volume sellers, printing your own barcode labels using your SKU numbers is a game-changer:
- Label printer: DYMO LabelWriter 450 (~$70) or Rollo printer (~$200 for shipping + labels)
- Label stock: 1" x 2.625" labels (about $15 per 750 on DYMO)
- Software: Free barcode generators (Avery Design & Print, or barcode fonts in Google Sheets)
Attach a barcode label to each item with its SKU. When it sells, scan the barcode to instantly pull up the item record in your tracking system. This eliminates searching through spreadsheets for item details.
Advanced: Automating Data Entry
As volume grows, manual data entry becomes the bottleneck. Here are ways to automate:
Platform API Integrations
Most major platforms offer sales data exports or APIs:
- eBay: Download sold item reports (CSV) monthly via Seller Hub → Reports
- Poshmark: Manual export or use Vendoo for automatic import
- Mercari: Transaction history CSV export
- Amazon: Payment and order reports available in Seller Central
Google Forms for Mobile Intake
Create a Google Form linked to your inventory spreadsheet for quick mobile data entry while sourcing:
Form fields:
- Item Description (short text)
- Brand (short text)
- Category (dropdown)
- Source (dropdown)
- Cost (number)
- Condition (dropdown)
- Photo (file upload)
Responses automatically populate your Google Sheet, eliminating the need to re-enter data when you get home.
Zapier/Make Automations
Connect your selling platforms to your spreadsheet/AirTable:
- “When eBay sale occurs → add sale data to Google Sheet”
- “When item listed 90+ days → send email reminder”
- “When monthly sales exceed $X → update dashboard”
These automations cost $20–$50/month but save hours of manual work for high-volume sellers.
System Recommendations by Volume
Here’s what we recommend based on how many items you’re handling:
Beginner (Under 30 Items/Month)
| Component | Recommendation | Cost |
|---|---|---|
| Tracking | Google Sheets (free) | $0 |
| SKU | Simple date-sequential | $0 |
| Photos | Phone camera + Google Photos | $0 |
| Physical | 4–6 bins on a shelf | $40–$80 |
| Total Monthly Cost | $0 |
Focus on building the habit of tracking every item, every cost, every sale. Don’t overcomplicate things.
Intermediate (30–100 Items/Month)
| Component | Recommendation | Cost |
|---|---|---|
| Tracking | Google Sheets or AirTable Free | $0 |
| SKU | Location-Date-Category format | $0 |
| Crosslisting | Vendoo ($24.99/mo) or manual | $0–$25 |
| Photos | Consistent setup + cloud backup | $0–$3/mo |
| Physical | Shelving unit + labeled bins | $150–$300 (one-time) |
| Total Monthly Cost | $0–$28 |
Read our scaling guide for tips on growing from intermediate to advanced levels.
Advanced (100–300 Items/Month)
| Component | Recommendation | Cost |
|---|---|---|
| Tracking | AirTable or Vendoo Pro | $20–$50 |
| SKU | Full format with barcode labels | $15/mo (labels) |
| Crosslisting | Vendoo or List Perfectly | $25–$50 |
| Photos | DSLR or pro phone + light box | $0 (equipment paid) |
| Physical | Dedicated room/garage with shelving | $300–$800 (one-time) |
| Accounting | QuickBooks or Wave | $0–$30 |
| Total Monthly Cost | $60–$145 |
High-Volume (300+ Items/Month)
| Component | Recommendation | Cost |
|---|---|---|
| Tracking | Custom AirTable + API integrations | $20–$100 |
| SKU | Barcode system with scanner | $15–$30/mo |
| Crosslisting | List Perfectly Pro | $49 |
| Automation | Zapier/Make workflows | $20–$50 |
| Photos | Professional setup with lightbox | $0 (equipment paid) |
| Physical | Commercial space or dedicated area | Varies |
| Accounting | QuickBooks + bookkeeper | $100–$300 |
| Total Monthly Cost | $204–$529 |
At this level, you’re likely approaching or exceeding full-time reselling income. The investment in systems pays for itself in time savings and tax optimization.
Frequently Asked Questions
Q: What’s the simplest way to start tracking inventory?
A: Open Google Sheets and create a spreadsheet with these minimum columns: Date Bought, Item Description, Cost, Date Sold, Sale Price, Fees, Profit. That’s 7 columns. Enter every item as you buy it. It’s not perfect, but it captures the essential data. You can add more columns later as your system matures.
Q: Do I really need a SKU system if I only sell 15–20 items per month?
A: A full SKU system is optional at that volume, but even a simple numbering system (001, 002, 003) written on a tag attached to each item helps enormously. When an item sells and you need to find it in your closet or bin, that number saves time. It also creates a definitive link between your spreadsheet record and the physical item for tax purposes.
Q: How do I track items I bought at a garage sale for $1 each when I don’t have a receipt?
A: Create your own receipt. After each sourcing trip, log: date, location (address), items purchased, and total spent. A note in your phone works. If you paid cash, this contemporaneous log serves as your cost basis documentation. The IRS accepts self-created records as long as they’re consistent and created near the time of purchase. Take a quick photo of your pile of purchases at the sale as additional proof.
Q: Should I track mileage for sourcing trips?
A: Yes. The 2026 IRS standard mileage rate is approximately $0.70/mile. If you drive 30 miles round-trip to thrift stores twice a week, that’s 3,120 miles/year = roughly $2,184 in deductions. Use a free app like MileIQ or Stride, or simply log it in your spreadsheet. Our mileage deduction calculator can help estimate your annual savings.
Q: What’s the best way to handle items from a lot purchase where I don’t know individual costs?
A: Divide the total lot cost evenly among all items as your baseline. If you paid $150 for 30 items from an estate sale, each item’s COGS is $5. For more accuracy, use proportional allocation based on estimated values. The key is consistency—pick one method and stick with it all year. Document your method in case the IRS asks.
Q: How often should I update my inventory tracking?
A: Daily or every other day. The longer you wait, the more data you forget, and the more the task feels overwhelming. Most successful resellers spend 10–15 minutes at the end of each day entering new acquisitions and recording sales. Batch it with your end-of-day shipping routine.
Q: When should I graduate from a spreadsheet to paid software?
A: When you start experiencing pain points: your spreadsheet lags when scrolling, you’ve had a double-sell because you couldn’t delist fast enough, you’re spending more than 30 minutes per day on data entry, or you can’t quickly analyze which categories or sources are most profitable. For most resellers, this happens around 100–200 active listings.
Q: What do I do with inventory tracking data at tax time?
A: Your inventory tracking data feeds directly into Schedule C of your tax return. You need: total gross sales (1099-K provides this), total COGS (sum of all item costs for items sold during the year), and total expenses (shipping, fees, supplies, mileage, etc.). Your tracking spreadsheet should produce all three numbers with a simple filter-and-sum. Export the data and provide it to your CPA, or use it with accounting software.
Q: How do I track items listed on multiple platforms at once?
A: In your spreadsheet, make the “Platform(s) Listed” column a comma-separated list (e.g., “eBay, Poshmark, Mercari”). When an item sells on one platform, immediately update the status and add a note about which platform it sold on. Then delist from the other platforms. Crosslisting tools like Vendoo handle this automatically—when you mark an item as sold, it can auto-delist from other connected platforms. If managing manually, our platform fee comparison tool shows you which platform nets the most for each item, helping you prioritize.
Q: Is there a free inventory app that actually works for resellers?
A: Vendoo’s free tier allows 25 crosslists/month—great for beginners. AirTable’s free tier gives you 1,000 records with full customization. Google Sheets is completely free with unlimited data. Notion’s free tier also works well as a database. Honestly, for most resellers under 50 active listings, Google Sheets outperforms paid apps because of its flexibility and zero cost.
Q: How do I handle returns in my tracking system?
A: When an item is returned, update the status from “Sold” to “Returned.” Add the return date and any return shipping costs you incurred. If you relist the item, create a new listing date entry but keep the original COGS. If the item is damaged and unsellable, update the status to “Loss” and record the cost as a business loss. This gets deducted on your Schedule C.
Build Your System Today
The best inventory tracking system is the one you’ll actually use. Don’t wait for the “perfect” system—start with a basic spreadsheet today, enter every item you buy, and record every sale. You can refine the columns, add automation, and upgrade to software as you grow.
Here’s your action plan for this week:
- Today: Create a Google Sheet with the essential columns from this guide
- Tomorrow: Enter all your current inventory (even rough estimates of cost are better than nothing)
- This week: Assign a simple SKU to every active listing and label the physical items
- This month: Set up your bin system and organize by category
- Ongoing: Spend 10 minutes daily entering new items and recording sales
Six months from now, you’ll have a dataset that reveals exactly which categories, sources, and platforms make you the most money per hour. That data becomes your competitive advantage—it’s what separates resellers who grind from resellers who grow.
For more on building a profitable and sustainable reselling business, check out our complete beginner’s guide and our 10-hour per week plan for part-time resellers.
Ready to know instantly if a deal is worth flipping? Underpriced gives you 10 free AI-powered deal analyses—before you buy, scan any item to see real sold comps, estimated fees, and projected profit. Pair that data with your inventory tracking system and never guess on a sourcing decision again. Download the app and start sourcing smarter today.