cancel
Showing results for 
Show  only  | Search instead for 
Did you mean: 

Am I average? Total cost as 24% of sale.

This is over, approx, 400 items sold over about 2.5 months. With listing fees, store fees, fvf, certain amount of ads/promotions fees, paypal fees - I am finding all that to average about 19% of each sale.

Packing material, trips to PO, paper/printer for labels/packing slips, other stuff, prob ads about 5% to that.

 

So, does cost of the sale at 24% sound average to you folks? (Of course, this does not include any cost or money spent on products, or shipping, as I charge shipping)

Message 1 of 25
latest reply
24 REPLIES 24

Re: Am I average? Total cost as 24% of sale.

I only spend 12 to 15% for items sold.  I HAVE just under  150 items for sale. I think your spending too much.

Message 2 of 25
latest reply

Re: Am I average? Total cost as 24% of sale.

I think it depends on how much you spend on shipping above that amount.

 

We're probably closer to 30%, but that includes shipping costs (most all of our stuff goes cheap, first class or media).

 

Adding in original costs and supplies, over 50%.

 

We're considering employment at McDonalds where we don't have to work as hard, as long or for so little.

Message 3 of 25
latest reply

Re: Am I average? Total cost as 24% of sale.

Not sure why you would have listing fees if you have a store.

 

$60 a month store, $0 listing fees. With a store, our fvf's are 8.15;  PP is 3.2 (annual avg with .30c ea transaction). Total is less than 12% including 1% 'Promoted' on everything. 

Message 4 of 25
latest reply

Re: Am I average? Total cost as 24% of sale.

Your  costs seems to be in line seeing that you have a store.

eBay fees  represent 10%  of your total selling costs and pay pal 2.9% + 30 cents for each transaction - not certain how much you allocate for  your monthly store costs to each sale or what promo fees you are paying for.  As a bare minimum you selling costs without shipping, without store  or promo features will run 13-14%. 

Ran a few calcs of some recent  sales and our costs (less shipping costs) run 18 - 21% of the item selling price - I charge separate for S & Handling.  Our gross margin based on total selling price ranges from 52% to 65% - some time we hit a home run too.

Look for ways to  cut you selling costs - e.g. don't drive to the PO ship via priority mail and have your carrier pick up your items - put first class packages in your mail box & put up the red flag (a flat rate padded envelope fits  in a standard street side mail box; find ways to reduce your acquisition costs; find way to reduce you shipping costs - Priority Regional Rate A & B boxes can help reduce you shipping costs especially for shipments around your home  state and further.  We are in Georgia and we save $ on shipments to Michigan and to central Texas with the regional rate boxes.

"I have the right to remain silent but I didn't have the ability." Ron White, Fritch, Texas
"Stay away from negative people, they have a problem for every solution." A. Einstein
The Devil made me do it! - Flip Wilson
If the band can only play loud - they ain't no good - peps too J.R. Johnson
Message 5 of 25
latest reply

Re: Am I average? Total cost as 24% of sale.

I always in my head figure 20% with fees, shipping, supplies. I had a very good month in December. My fees ended up between ebay and paypal totaled about 13%

That will vary from month to month, But it's hardly ever more than 15% and that includes 1% for promotion.
Message 6 of 25
latest reply

Re: Am I average? Total cost as 24% of sale.

Mine is at 23%, includes shipping.
Message 7 of 25
latest reply

Re: Am I average? Total cost as 24% of sale.

Packing material, trips to PO, paper/printer for labels/packing slips, other stuff is a tax write off

Message 8 of 25
latest reply

Re: Am I average? Total cost as 24% of sale.

Those items may be a tax write off but that's just a small % of what you spent to purchase them, so no big help there!!!

Message 9 of 25
latest reply

Re: Am I average? Total cost as 24% of sale.

Try to keep your costs down! 

Reuse shipping and packing material.

Walk to the post office if possible.

 

Dose the cost of packaging and shipping out weigh the money you receive from the buyer?

check your numbers

 

Message 10 of 25
latest reply

Re: Am I average? Total cost as 24% of sale.

Seems about right to me.......It's more than I figured upon starting Ebay......But I'm even a little higher...25-26%... Ed S.

Message 11 of 25
latest reply

Re: Am I average? Total cost as 24% of sale.

I run with free shipping at about 34%-50%.
Message 12 of 25
latest reply

Re: Am I average? Total cost as 24% of sale.

First of all it doesn't matter one bit how many items you have for sale. How could you possibly only be running at 12%. Ebay takes 13-17% per items you sell. 10-14% just for your selling fee and twenty five cents plus 3% for a processing fee per item. paypal charges 30 cents per transaction and 3%. Etc Etc. That is just the beginning of all the fees.

Message 13 of 25
latest reply

Re: Am I average? Total cost as 24% of sale.

If you have a store the fee for most categories is 9.15%. If you are Top Rated Plus you get 10% off the final value fees bringing it down to 8.2%. Add in the PayPal fee of 2.9% puts you at 11.1%. Add in the store subscription and 30 cent per transaction PayPal fees and you will be a little north of 12% depending on your volume and average sales price.

Message 14 of 25
latest reply

Re: Am I average? Total cost as 24% of sale.

As other's have pointed out all the "fees" are a tax deduction which helps some. 

 

One of my bigger deductions is vehicle mileage. I use Everlance on my phone.  Any trip to the post office or FedEx drop gets logged as business.  Any driving directly related to purchases, ie thrift stores, garage or estate sales, etc can be fully deducted if you don't include personal business.  For example if you drive 60 miles each way to visit a family member and stop at an estate sale on the way to purchase stock you can count some of the 120 mi as a business deduction (usually 50% of the mileage, but check the rules in your state to be sure).   $0.55 per mile adds up QUICK, especially if you have a fuel efficient vehicle.

 

I never pay for packing materials, there are businesses that throw away bags and bags of bubble wrap, peanuts,

air pillows, etc. Figure out who they are and ask them if you can come in once a month or so.  Most will be more than happy to recycle rather then discard.   Air Pillows are the BEST for items that are not breakable, no weight, no mess.  (I hate packing peanuts with a passion because of the *mess*)

 

I know a lot of people who recycle boxes, which I do to a limited extent, but mostly I purchase using my shipping supply coupon (and I ALWAYS use that coupon) or buy them from other sellers.  If you have a ULine warehouse in your city check their prices, shipped their boxes are expensive, but if you can do local pickup they are affordable.

 

Member of the Grumpy Old Man crew
Message 15 of 25
latest reply