Cost me more in fees than I earned in sales

[perg34]

I am new to eBay and I feel stupid! I listed 8 items. Sold two, my earnings total $125.00. I have 6 items still active. EBay charged my bank account $22.35 because of fees, shipping charge adjustment.  I came here to make money and it cost me money and I made nothing for my items. What does it mean when it says last for free? I paid to list and it was after April 1.

I need to get educated because I will not be listing my items and then pay to have people buy

[klhmdg]

You should have done the education before you assumed "list for free" means there is no fees at the sale of the item.

If I were you I would start reading - try in the right of the page Start Selling, About Listings , and returns is a good one to know.

To mitigate your losses you should remove your other listings if the are BIN or have no bid. Then relist for free once you know what you are doing.

If you have questions once you have read and are more educated, come back with anything you dont understand.

[chapeau-noir]

@perg34   You can get familiar with final value fees here.  

Also tips on how to sell.  This gives you an overall introduction.

There's always a learning curve.

[susanb1872]

Listing is free but selling is not free. When I first started selling, I decided to create an Excel spreadsheet to keep track of all the transaction costs because if couldn’t make a profit then there was no sense doing it. I don’t make tons of money but I am always on the positive side. Here are the headings of my spreadsheet:  Item price + buyer paid shipping-(minus) postage I pay-(minus) cost of item-(minus) shipping supplies expense-(minus) ebay fees=net profit. You could use this formula before you list to get an idea of your profit. When you list, there is a tab you can click to find out the fees ahead of time. There can be some variation based on sales tax and shipping but it’s a start.

[monica-sells]

You certainly did not lose money on the 1st 2 items you sold. You had to make 'something'

(just calculating)

BUT...you WILL lose money if your item:

Princess House Pets Group of 5 All with original Foil Label except cat.

Sells with just the opening bid of .99....The cost of shipping and the FVFees will be MORE thank the total sale price....same with the Angel Cordero Bobblehead.....

If you are going to Auction, you have to start them at the amount you need to be profitable....not .99 cents with almost 8.00 in shipping

end at least those two and start over

[dbfolks166mt · Accepted solution]

     Others have already covered the eBay selling fees. About the only thing I would add is before you start selling/listing develop a cost model that will allow you to determine about what your net eBay revenue will be after the eBay fees and shipping costs are deducted. 

     Once you have that piece factor in the other non-eBay related costs like COGS, shipping supplies, Federal and State income taxes and see what you need to set your selling price at in order to make a profit or ROI that suits your goal. As an example for the Vintage Fiestaware 12" Footed Comport you sold. If you had sold that to me. I live in Virginia. If you subtract the rest of your non-eBay related expenses from the $63.42 net eBay revenue are you making a reasonable profit or return. If not adjust your selling price so you are. 

[susanb1872]

A couple of points-In my previous reply I did not mention income tax which should be a consideration. Second-I was confused on your listing for the Kentucky Derby glasses. If I would like to purchase just one, for example, how would I do that if it is a lot of 31 in an auction? Why would I pay $100 for all when the BIN price is $80.? And there is a reserve on the glasses and did you know that costs extra? 

[candd205]

Don't set a reserve. You have to pay for that every time you list an item, whether it sells or not, and it's expensive. If you have to use auctions, just list the item for the least you will accept.

[perg34]

Thank you for explaining this 

[perg34]

This is very helpful.  Thank you for the tips. I will definitely follow this

[perg34]

Thanks, I am understanding why it cost me money now

[perg34]

Your so right! Valuable lesson learned 

[perg34]

I have learned I should start over after I know what I am doing.  Very valuable info here

[soh.maryl]

Why would income tax be a consideration?

Did you mean state sales tax? Those are two different things. 

[dbfolks166mt]

Why would income tax be a consideration?

Did you mean state sales tax? Those are two different things. 

     Income tax is a selling expense external to eBay. It is what you pay on your net income when you file your taxes. Depending on what tax bracket you are in at the Federal level it can range from 10-37%. For the state it depends on your state which can vary widely. 

     If your net from a sale is $100 after ALL expenses other than income tax have been factored in and, for example, you are in the 10% Federal Income tax bracket and your State Income tax rate is 5% the your actual bottom line net is $85.