Listing Final Value Fees - Store vs. No Store
I have been selling for a couple of months and have found the final value fees higher than expected.
I have found a few help pages on final value fees but am still not sure If I would save money by purchasing the monthly store or not. I currently have 95 active listings, have sold 16, and all items sell for under $100.
Thoughts?
4 comments
ladydragonrider421
·4 days agoOne area some sellers don't take into account is: In the final value fee, that includes what the buyer paid for the item, plus shipping, AND sales tax. So, work out a formula and make a chart and adjust your prices accordingly.
For example, if the final value fee is 15% plus 35 or 40 cents, and the item sold is $ 100 - Add the shipping and tax on top of the $ 100, then multiple the total by 15% plus the 35 or 40 cent final value fee or whatever it is for you. What you'll see is the Ebay selling fees in the end are higher- bc you didnt account for the tax and shipping cost collected.
Look at your final Ebay fees on one item you sold. Divide fees by the price the item sold for. If you had $ 22 in fees and the item was $ 100, thats 22%, not 15%, just as an example. At 15% for my sales in jewelry, my calculation works out to .166, or 16.6%
Now, make a chart and a column for your prices like 25,35,45,50, or your common listing prices. Take into account what you charge for shipping and what you pay for shipping in this equation too.
Multiple each listing price by .22 or whatever percentage you figured out from a typical sale.
You list an item for $50. You charge $ 7 for shipping. Multiple $ 57 x .22, or $ 12.54. Then add the final value fee of 35 cents or whatever it is. 12.54 +.35 = $ 12.89
Then add your actual shipping cost, or say $ 6 to $ 12.89 = 18.89. $ 50 - $ 18.89 = $ 31.11
Your chart should look something like this :
25
35
45
50 = $ 31.11
60
70
80
Etc.
So what does this tell you ? If you have a sale price of $50 and you must have $5o from the sale, your listing price needs to be at least $ 18.89 higher, or $ 50.00-31.11.
It's an estimate. Of course, when the price is increased, the percentage of selling cost also increases, but it's a closer estimate to your needed selling price.
And, look at the shipping cost differential closely. Try Pirate Ship or another shipping payment provider to calculate general shipping rates - the highest being from coast to coast. If the rate you'd pay is about $ 6, then increase your shipping cost by a dollar or two. Why ? If you're charging $6 to ship, Ebay takes 22% (in this example) of the shipping cost the buyer paid too!
Make a chart! My chart starts at $25 and goes up 5 or 10 dollars up to $300.
It's taped to my desk. When I list an item and I think, I must get at least $ 50 for this item, the chart tells me I must list at what my chart says.
Hope this helps - I have discovered that making a chart helps you see right in front of you - like as for me - if I list and item at a fixed $70 or say $ 69.95, I KNOW my proceeds will be $ 56. Get the formula down in your head -write it down, and do each sales price.
wonderlandestatefinds
OP1 week agoThanks for sharing. One feature I would like to use is the sales discounts that are only available with the store. But I don't think I am to that point where it makes sense. When I get to the 150-200 listings range, will consider it.
shire123
·1 week agoWas kind of on the same boat about one year ago. Then started listing more and running into the 250 free limit.
Do the math. If your sales total is enough the lower fit will pay for the monthly basic store “rent”
For the past few months getting the store saved me several hundred dollars
rfmtm
·1 week ago · EditedNo, you probably would not benefit much. Usually you need to be closer to 150-200 listings to make basic store discounts worth it. However, if there are other features that only store owners have that you think would benefit your sales or you plan to continue expanding, then you should still consider at least one of the lower level stores.