Selling Fee Breakdown

[wp-resale]

Can someone please help me understand how much I am really profiting off of my items? Doing of review from January 1, 2022 unit today. My store did $7,759.24 in total sales, $386.64 collected by ebay, $1,715.95 in selling costs and its saying my net sales are $5,656.65  

5,656.65 / 7759.74= .72 

does this mean i am only netting an average of 72% on my ebay sales? how would i be paying 28% in ebay fees? I always sell with buyer pays shipping, am i interpreting this info incorrectly? 

[coffeebean832]

Before you list anything- you need to know all your costs associated including fees, COGs, packing/shipping, incidentals, etc. Use that info to determine whether or not it's profitable to sell an item in line with the average selling price. You should know upfront if you will make a profit and how much.

Your numbers are too vague- and they don't include COGs or packing materials.

What's "collected by eBay"? Is that sales tax collected and remitted to the states or is it seller fees? Were your shipping labels purchased on eBay?

It would be better if you took a handful of individual sales and broke down each line item to understand where you are, then go from there.

[slippinjimmy]

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@wp-resale wrote:

does this mean i am only netting an average of 72% on my ebay sales? how would i be paying 28% in ebay fees? I always sell with buyer pays shipping, am i interpreting this info incorrectly? 

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Probably the latter.....

Given your average selling price is not super low your total eBay fees should not be more than 15%.

What may be happening is that your Gross Sales include shipping charged and paid. If you are charging buyers exact or nearly exact postage then that portion of your gross has zero profit margin.

Maybe you are taking the total of fees and shipping and calculating it as a percentage of the item price only, that is how you get a very high overall rate.

An example using rough numbers

Item $10

Shipping $5

Buyer pays a total of $15 (we will leave out the sales tax for the moment)

eBay charges fees on the $15 lets say 14% or $2.10

If you calculate the percentage using just the item price only then it's $2.10 on $10 which is 21% but still only 14% of the actual total transaction value.

If that $10 item had $10 shipping it would be 14% of $20 = $2.80 which would be 28% of the Item price alone.

Add Sales Tax collected by eBay then those fee percentage would all go up by a few points depending on the tax rate.

As @coffeebean832 mentioned, it's more revealing and less confusing to run the numbers on a single transaction.