Can you explain the "cost of items bought for resale" to me please

[Phillip1]

Costs of items bought for resale can include any inventory items that you buy or make with the intent to sale for a profit.

Examples

• The cost of clothing bought second hand on e-bay that you intend to sale in your store.
• The cost of livestock that a farmer acquires with the intention of selling.
• The cost of materials you buy to produce a product that you will sale.