2017 Tax Numbers

[luckythewinner]

I shut down for the last three weeks of the year to avoid holiday shipping hassles, so I just calculated my 2017 tax numbers. 

Here are some of the key numbers, at least from my perspective: 

• I listed almost 10,000 items and paid $0 insertion fees (up 25% vs. last year)
• Gross sales were up 21% vs last year and 25% vs. two years ago
• Net profit was up 27% vs last year and 21% vs. two years ago
• Net profit was 69% of my selling price
  (vs. 68% last year and 78% two years ago)
• 14.5% of shipping charges were retained after actual cost
  (vs. 15% last year and 20% two years ago)
• PayPal & eBay fees amounted to 18.6% of the selling price
  (vs. 19.6% last year 19.3% two years ago) 

[swenson8781]

So... you listed more items, increased your net profit, paid a bit more in shipping costs (which partially ate into your net profit), and paid slightly less in fees than previous years?

Did I follow the basics of that right? If so, I think those are actually GOOD numbers.  It sounds like some areas offset others, but overall I think the greatest number to see is the 'sold more items' with a slightly higher net profit.  Although that may have been, in part, due to increasing your inventory as a whole.  Sounds like you run your business well.

[18704d]

I'm curious.

Did you also have to invest much time or research, dropping certain items

adding different items or categories?

As opposed to simply listing and relisting the same type(s) of items as always?

Thanks,

Lynn

[luckythewinner]

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@18704d wrote:

Did you also have to invest much time or research, dropping certain items

adding different items or categories? As opposed to simply listing and relisting the same type(s) of items as always?

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I'm a hobby seller in music memorabilia, so most of my inventory comes from recognizing opportunities rather than researching products or categories. And I have the luxury of limiting myself to items with low cost and good potential. 

Much of my listing volume comes from relisting inventory that most would call "stale" or "slow". But I recognize that there is a limited market for a Klaus Nomi press kit or a Hanoe Rocks ticket stub, so sometimes it takes a year for the right buyer to be searching at the same time I am listing. 

But that does not mean I am not constantly tweaking my business model. I long ago recognized that shipping costs are both a drag on sales and a risk of loss - so I moved to lightweight  items that can ship by First Class or Media Mail rather than autographed bowling balls 🙂