How do I tell how much *PROFIT* I made?!?

[kevank100]

So, someone buys from me. It says the following information on my 'All Activity' tab in seller payments:

Amount: $16.78

Fees: $-2.75

Net: $14.03

Here was the product transaction:

Price: $9

Shipping: $7.78

So...how much did I make? What is my profit? Why am I making $14 off of a $9 item? That obviously can't be my profit, right? It must be the revenue then? If that's the case, where can I see the PROFIT for all of my sold items, because I don't care at all about revenue.

[funfactorychannel]

No, you havent deducted the cost of item yet.

[chariot_badges]

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@kevank100 wrote:

I genuinely don't see it in the overview section.

As for shipping, I have no idea. AFAIK, buyers pay the shipping and sometimes it makes me buy the label or something...something weird like that, I have no idea.

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You're making it harder than it needs to be.

Shipping costs are GIVEN to you by eBay.   It's how much you spent on shipping.

Put it in the cost column.

Don't get caught up in the pennies.

You should charge MORE for shipping than it costs you.

Profit is NOT a dirty word, and if you work in wrapping all that crap you should get paid for it.

Most of my stuff weights less than 4oz, and that costs me (on average) about $5.

I charge $6 for two reasons:  Those envelops, tape, ink cartridges ... not free.   AND, I expect to be paid for my work.  Profit.

Add up all your costs.

Add up all your income.

Subtract cost from income.   Profit.

That's about as simple as I can make it.

Shipping is BOTH expense and income.

Doesn't matter ... keep it simple.

Add the negatives and the positives to find out your answer.

I came back for a PS.

You GOTTA learn about shipping and handling.  YOU GOTTA know your numbers.

If you don't, you'll lose your ass  (and what I mean by that mods is ... your donkey.  He will lose his donkey).   Sheesh.  

[intimatesinc]

Add the total amount the buyer paid. $7.78 + $9.00 = $16.78 - $2.75 (eBay fee) =$14.03 

You have to subtract the shipping label cost from the $14.03 to see what you made. 

[johnrj1226]

Here is the Microsoft Excel spread sheet on how I determined the profit on each and every sale I made.  Don't  believe anyone can help you by filling in the blanks  of missing &/or unknown information.   Ask a  tax-preparer in your neighborhood for  advise.  It is the  sellers responsibility to keep records on their  business  transaction.

GL

BTW  Have filed my income tax every year since 1964 claimed all my income.

[chariot_badges]

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@intimatesinc wrote:

Add the total amount the buyer paid. $7.78 + $9.00 = $16.78 - $2.75 (eBay fee) =$14.03 

You have to subtract the shipping label cost from the $14.03 to see what you made. 

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Wrong.  It's already in there.

Look at my first post in this thread.

There are two line items ... one is under the cost and ebay calls it "postage" I think.

Then there is sales ... and the price you charged (if you charge any) is already in there, postage is part of the total income for us. 

So in my example of my store ... I charge $6 for shipping handling, and ebay takes out for the label, which is somewhere around $5.  So the in/out is already accounted for.  That dollar over contributes to the 33% profit.  Yes, s&h should be profit generating.

Don't do it twice.   Don't make it hard.

You don't need an XL spreadsheet for each item (unless this is a hobby and you've only got a hundred items).  

Keep it simple.   I know my numbers ... I make about 33% profit.  If I do one sale at 20% and the next at 50%  I don't really care.  At the end of the year its 33%.   

[johnrj1226]

Personally shipped 1665 items had em all on  a XL spreadsheet, could  summarize my  annual activity with a click or  2 of the mouse buttons come tax time - never once received a 1099K.  Used XL a lot  in my real  career selling activities from 1993 to 2007. Big time sellers use a software  package to do the  same but  I started  with  my XL spread sheet and  stayed with it.  Average GP before taxes on all 1665 items was 46.4% on the total selling  price of the item including S & H (never did the free shipping on anything).  Average selling price of the 1665 items shipped $46.76 each.  To me selling items of  higher prices  than in the 5 to 20 range means less work the great  majority of my items were  over 1 lb. and seldom over 6 lbs. or big and bulky = Priority USPS mail.  Live in GA and 45% of my items went to the Western region States - USPS zone 8 + some US protectorates.

[stainlessenginecovers]

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@kevank100 wrote:

So "Order earnings" is the actual profit I've made, even after any shipping I might have had to pay for (like label)?

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Profit is the amount of money you MADE, IN your pocket after you deduct the following

a.) Fees

b.) Shipping Label

c.) Original Cost

So, TOTAL SALE, minus a, minus b, minus c equals

PROFIT

There is NOTHING on ebay that knows #c. Only YOU do. 

Without YOU knowing/providing, you will NEVER know the real Profit. 

By the way, a 'buyer' has NEVER purchased the shipping label. You, the Seller, ALWAYS has. Buyer may have PAID for it, but you 'bought' it (and could have paid more or less than you- yes, YOU, charged the buyer)

[mantle1951]

Order Earnings is not your profit, deduct from that what you paid for the item you sold.

[albertabrightalberta]

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@kevank100 wrote:

As for shipping, I have no idea. AFAIK, buyers pay the shipping and sometimes it makes me buy the label or something...something weird like that, I have no idea.

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The buyer DOES pay the shipping. 

Buyer pays you for the item + shipping + tax. 

You use part of that money to purchase the shipping label.