@erin12311 I disagree with you. Your end profit, which you figured based on eBay's records, does not include your cost of goods sold. Your end profit was less, and possibly you sold the purse at a loss depending on how much you paid for it. That's fine if you are just selling off your own stuff. That's not good if you bought it specifically for resale.
You sold the purse for $10.00. Had I bought it, shipping would have been $15.71. For you I'm in Zone 8. Assuming a 0.07% sales tax (a little higher than mine), then the buyer would have paid about $27.51, less if the buyer was closer to you and paid less in shipping, and a slight charge up or down based on the sales tax the buyer paid.
eBay fees are based on the total amount the buyer paid, even if that money, like sales taxes, never come to you. For simplification, I am using 20% as the fee, but it less.
20% of $27.51 = $5.50 in eBay fees.
$27.51-$5.50 (eBay fee) = $22.01
The taxes go right back to eBay so they can pay it on your behalf. In my example, taxes were $1.80.
$22.01-1.80--$1.80 = $20.21
We don't know if you pad your shipping cost to cover fees and/or supplies. Let's assume you don't, and the label cost exactly what the buyer paid in shipping to you, $15.71 if I was your buyer and that should be the max unless you shipped further than Zone 8.
$20.21-$15.71 (shipping label) = $4.50.
My location and estimation make it slightly lower than what you said you netted. As I started off, you have to take out your cost of goods sold. If your shipping charge did not include your supplies, you have to take that out as well. Then, if you are running a business, there is the cost of overhead. There is the cost of your time, and costs to go out and find the item to buy. The reality is you may have broken even. If you are trying to get your business started and need of good feedback from real buyers, then I have no problem with a break even sale or even a slight loss. There is a place for those things in certain circumstances because just having a sale has benefits that aren't directly related to cash profit.
If you don't want to have these issues, either price better, reconsider your shipping options, or find better things.
One note: You listed that as new with tags, but you noted there are condition issues with the purse in addition to there being no tags. I also see that you do not accept returns.
Just so you are aware, your buyer has a valid Item Not As Described claim on this purchase because you listed it as new with tags and it is not new with tags. It has flaws and should have been listed as pre-owned or perhaps as new with flaws, if that was an option. It is completely irrelevant how much you paid for it and it is completely irrelevant that you never used it since it does have flaws, even if they are age and storage related. Contrary to how you define "new" in your description, to eBay New with Tags means it has tags. I don't see any tags on that purse. If your buyer opens a return, you will want to address that and get the purse back and give them a refund, or give them a refund and let them keep it. Otherwise, if they get eBay involved, you will lose, eBay will take your money, and you will be out the shipping label cost, and this sale will most definitely be a bigger loss for you than it already is. 😕
mam98031 • Volunteer Community Member • Buyer/Seller since 1999
