How to flip GovDeals items for profit
Flipping GovDeals comes down to one sum: resale value minus landed cost minus selling fees equals profit. Work it out before you bid and you'll make money more often than not. Skip it because a lot looks cheap, and as-is, no-returns buying will eventually catch you. Here's the method, with the numbers.
Step 1: Start from what it actually resells for
The retail price doesn't matter. What matters is what the item sells for used, right now. Look up eBay sold listings for the same model in the same condition, ignore the outliers, and use the lower-middle part of the range.
Step 2: Add up your landed cost
Landed cost is everything you pay to get the item into your hands and ready to sell:
| Cost | Notes |
|---|---|
| Winning bid | What you bid |
| Buyer's premium | 12.5% on most GovDeals lots; check the listing |
| Sales tax | Depends on where the lot is and whether you have a resale certificate |
| Shipping or freight | Parcel, LTL freight or auto transport, or fuel and time for pickup |
| Repairs and cleanup | Parts, testing, cleaning, replacing keys or titles |
Step 3: Subtract your selling costs
Selling isn't free either. Take off marketplace fees (eBay, Facebook), payment fees and the cost of shipping to your buyer. What's left is your profit.
Worked example. A pallet of 10 business laptops:
- Conservative eBay sold price: about $120 each, so $1,200 to sell all ten
- Winning bid $400 + 12.5% premium ($50) + 8% tax ($36) + freight ($180) = $666 landed
- Selling fees at about 13% ($156) + shipping to buyers (about $250) = $406
- Profit: $1,200 − $666 − $406 = about $128, a lot less than "$400 for $1,200" made it sound
Step 4: Check for friction
These are the things that sink deals that look fine on paper:
- Pickup-only. A cheap lot 1,400 miles away isn't cheap. About 7 in 10 live GovDeals lots say pickup-only or pickup by appointment.
- Untested, for parts, as-is. Assume the worst about anything not shown working.
- BIOS and activation locks on laptops and phones can make them close to worthless.
- Missing titles or keys on vehicles and equipment.
- Short removal deadlines can force expensive last-minute transport.
Step 5: Set a maximum bid and stick to it
Work backward from the margin you want to the highest bid that still gets you there, then don't go past it. Auctions are built to pull you past your number. Profitable flippers aren't the ones who find a single amazing lot. They're the ones who stop at their maximum every time.
GavelGap runs these steps for every live GovDeals lot: a resale estimate from real sold prices, landed cost, the profit gap and friction flags.
Try GavelGap free →Frequently asked questions
What is landed cost on GovDeals?
Everything you pay to get the item in hand: winning bid, buyer's premium (12.5% on most lots), sales tax, shipping or pickup cost, and any repairs. Profit is resale value minus landed cost minus selling fees.
How much margin should I target?
Many experienced resellers want a conservative resale price of about twice their landed cost, and rarely bid more than 50% to 60% of what they'll net after fees. Riskier categories need a bigger cushion.
What are the best items to flip on GovDeals?
Items with lots of buyers and easy-to-find sold prices, like laptops, desktops, tools and work vehicles. Avoid thin markets, untested lots and niche items unless you can inspect them in person.
Should I use eBay asking prices or sold prices?
Sold prices. An asking price is what a seller hopes for; a sold price is what someone actually paid.
Try it: run the numbers on your next lot with the free GovDeals profit calculator.