These are the things you buy to sell or turn into something you sell. It's the costs of raw materials, packaging, and shipping that ultimately become part of the products you sell or create.

Examples include:

  • Art supplies

  • Fabric and other craft materials

  • Wood and metal supplies

  • Food and beverages that you sell as packaged or that you use as ingredients

  • Fitness equipment you sell to clients

  • Learning materials (books, notebooks, flash cards, and so on) that you sell to students

  • Organization materials or systems that you sell to clients

  • Home furnishings you restore or upcycle and re-sell

  • Specialized paper for photos or print-making