My eBay profit margin has been roughly 30% for the past four years - down from 40-60% for my first 18 years. There are several reasons for that. Like the OP I now sell primarily items in the $10-$20 range plus shipping - selling higher priced items has become too risky.
All the shipping increases in recent years have resulted in my lowering the price of the item as well as paying more in fees calculated on shipping cost and then sales tax. Cost of goods sold has not changed much because most of what I sell was purchased years ago when I also had a brick and mortar store. I rarely go to thrift stores or yard sales any more. Since the pandemic thrift stores have become too pricy and the "good stuff" is often sold online or before it hits the shelf. Estate sales prices are even worse.
On the positive side the federal government is getting a smaller take of my profits.
Because you are selling cheap items. $5 item with $10 shipping. That's $15 of which eBay is going to get about $2 and then it cost you $10 to ship it. You made $3 on a $15 sale....That's 80% selling cost/fee.
You need to check your items to make sure "asking price" is high enough to cover EBAY fees. When you have $4.99 with expensive shipping costs (you are probably losing money). EBAY fees charged on entire total (purchase price + shipping + sales tax) plus 30 cent handling charge. Additional fee of 1.65% for international buyers. If you "promote your items" there will be an addition fee when you item sells.
Your description for some items says "no international shipping". But when I checked I see that you "allow international shipping" for that item. You may want to correct that.
Vintage English Screw Barrel Pistol 1725 Picture Home Decor Burnt Paper On Wood $4.99 +$11.45 shipping
The price + shipping is $16.44 and by adding a hypothetical 7% sales tax the total would be $17.59.
If it is in a typical category, your fees would be 30 cents plus 13.25%, for a total of $2.63.
Assuming you paid the full $11.45 for postage, your total selling costs would be $14.08.
So that would put your selling costs at 80% of the buyer's total payment ($14.08 / $17.59).
Another way of looking at the above example is to calculate how much of the selling price you put in your pocket at the end of the day.
You made $2.36 ($16.44 - $14.08) profit on a $4.99 item. So kept 47% of your selling price.
One way to improve this is to focus on items with lower shipping costs.
In the above example, if your $4.99 item had been shipped by First Class at $4.50, your profit would have been $3.35 or 67% of your selling price.
And better yet, if you charged a flat $4.50 for shipping and the cost was really only $4.00, your profit would have been $3.85 or 77% of your selling price.
kensgiftshop
·3 years agoDoes that cost also include your store fee's and what you pay for shipping?
an-57470
·3 years agoMy eBay profit margin has been roughly 30% for the past four years - down from 40-60% for my first 18 years. There are several reasons for that. Like the OP I now sell primarily items in the $10-$20 range plus shipping - selling higher priced items has become too risky.
All the shipping increases in recent years have resulted in my lowering the price of the item as well as paying more in fees calculated on shipping cost and then sales tax. Cost of goods sold has not changed much because most of what I sell was purchased years ago when I also had a brick and mortar store. I rarely go to thrift stores or yard sales any more. Since the pandemic thrift stores have become too pricy and the "good stuff" is often sold online or before it hits the shelf. Estate sales prices are even worse.
On the positive side the federal government is getting a smaller take of my profits.
inhawaii
·3 years agoWhy are your costs 78% of your sales?
Because that how you structured it.
YOU are the one who knows your costs.
YOU are the one who sets the prices.
YOU are in control.
mybigsale
·3 years agoeBay has discovered most sellers will leave eBay if eBay keeps 100% or more 🙄.
buyselljack2016
·3 years agoThe overall cost to sell items at "yard sale" prices will always be a large %age of the pie chart $$$.
714ricki
·3 years agoPlease show us the math so that we can help you better.
chariot_badges
·3 years agoWhy are my costs to sell on ebay 78 percent of my sales
Because you are not charging enough for your product.
redlinear
·3 years agoBecause you are selling cheap items.
$5 item with $10 shipping. That's $15 of which eBay is going to get about $2 and then it cost you $10 to ship it.
You made $3 on a $15 sale....That's 80% selling cost/fee.
coolections
·3 years agoPlease do not say you are offering free shipping but not charging the buyers for the shipping. That is the ONLY way your fees can be 78%.
luckythewinner
·3 years agoHe did not say his fees were 78%. He said his selling costs were 78%. Fees are only one part of selling costs.
soh.maryl
·3 years agoOP did not state his FEES were 78%. He was referring to his SELLING COSTS. Two different animals.
southern*sweet*tea
·3 years agoRight, but some people don't seem (or want) to understand that.
Fees are a part of total selling costs, fees are not the entirety of selling costs.
Fees are fees. Selling costs include fees, cost of goods, postage, shipping materials, labor, time, ink, paper, tape, etc.
caldreamer
·3 years agoYou need to check your items to make sure "asking price" is high enough to cover EBAY fees. When you have $4.99 with expensive shipping costs (you are probably losing money). EBAY fees charged on entire total (purchase price + shipping + sales tax) plus 30 cent handling charge. Additional fee of 1.65% for international buyers. If you "promote your items" there will be an addition fee when you item sells.
Your description for some items says "no international shipping". But when I checked I see that you "allow international shipping" for that item. You may want to correct that.
luckythewinner
·3 years agoExample:
Vintage English Screw Barrel Pistol 1725 Picture Home Decor Burnt Paper On Wood
$4.99
+$11.45 shipping
The price + shipping is $16.44 and by adding a hypothetical 7% sales tax the total would be $17.59.
If it is in a typical category, your fees would be 30 cents plus 13.25%, for a total of $2.63.
Assuming you paid the full $11.45 for postage, your total selling costs would be $14.08.
So that would put your selling costs at 80% of the buyer's total payment ($14.08 / $17.59).
luckythewinner
·3 years agoAnother way of looking at the above example is to calculate how much of the selling price you put in your pocket at the end of the day.
You made $2.36 ($16.44 - $14.08) profit on a $4.99 item. So kept 47% of your selling price.
One way to improve this is to focus on items with lower shipping costs.
In the above example, if your $4.99 item had been shipped by First Class at $4.50, your profit would have been $3.35 or 67% of your selling price.
And better yet, if you charged a flat $4.50 for shipping and the cost was really only $4.00, your profit would have been $3.85 or 77% of your selling price.
luckythewinner
·3 years agoWe cannot see your account and we cannot read your mind.
So we cannot tell you why they are 78% of your sales until you give us a detailed breakdown of your costs.
And once you do that, you will know why they are 78% of your sales.
brightlightbookseller
·3 years agoWhat costs are you calculating?
If that's after CoG, and shipping, and everything else that you might could possibly include, that's actually not too bad.
If that's just eBay fees, I'd say you're calculating wrong.