eBay

jamie_1184 · ‎05-17-2017

Is anyone else out there having issue with their selling cost's being half of their total monthly net amount? seem's a little high on the fee's and shipping cost if you ask me. Don't know how ppl are making it work out there. Is there something I am missing?

smenkveld · ‎05-17-2017

@jamie_1184 wrote:
okay thank you that was very helpful. Just out of curiosity for other's opinions. If we take your item you got for 50 cents and sold for 7.50 than you are more than likely profiting close to a little over $2.00. Are you satisfied with that amount as a profit? - or should I ask, do you believe that is a good profit?

For individual OAK items that is a very lousy profit if you can even call it that but if you have 100 of that same item then it a good profit and spending time making ads for individual one of a kind items $2 profit is very expensive

Opportunity is missed by most people because it is dressed in overalls and looks like work. Thomas Edison

thatsallfolks · ‎05-17-2017

@nowthatsjustducky wrote:
@jamie_1184 wrote:
okay thank you that was very helpful. Just out of curiosity for other's opinions. If we take your item you got for 50 cents and sold for 7.50 than you are more than likely profiting close to a little over $2.00. Are you satisfied with that amount as a profit? - or should I ask, do you believe that is a good profit?
Let's see how this would break down if it was one of my items... (basing this on not doing "free" shipping, and charging a flat $3.50, and the package being 4 ounces or less)

Item Price                      $ 7.50
Charged Shipping and Handling: $ 3.50
Total Charged:                  $11.00

Product Cost:                   $ 0.50
eBay fee of 9.15%:              $ 1.01 (due to having a store and this not being a category that qualifies for a lower FvF)
PayPal Micro Payment Fee:       $ 0.60
Total CtS thus far:             $ 2.11

S&H Charge vs. Actual ($2.61 postage): $0.89 in seller's favor
Actual CtS: $1.22

Net Earnings: $5.39

If it is a super simple item to package up (like slip it into a padded envelope and send it on its way), then that $5.39 is a bloody good profit for a micro payment item.

@jamie_1184

Just for emphasis, the difference between @nowthatsjustducky's breakdown and yours is this:

Charged Shipping and Handling: $ 3.50

That alone moves the profit from your estimated $2 to ducky's calculated profit of $5.39. All of the work and risk for a $2 profit doesn't make sense to me.

luckythewinner · ‎05-17-2017

@jamie_1184 wrote:
okay thank you that was very helpful. Just out of curiosity for other's opinions. If we take your item you got for 50 cents and sold for 7.50 than you are more than likely profiting close to a little over $2.00. Are you satisfied with that amount as a profit? - or should I ask, do you believe that is a good profit?

For the past five years, I have kept 75% of my selling price. So your question should really be "Do you think keeping 75% of your sales price is a good profit?" To that, my answer is "Yes".

This is where the shortsightedness of sellers on these boards never ceases to amaze me. My annual business is not limited to one $7.50 sale, so why in the world would I focus on one item that may not be representative of my business as a whole?

But that aside ...

Here's a $7.50 item, $3.25 postage charge, and 50 cent cost:

Received: $10.75
Postage: -$2.77
Supplies: -$0.35
eBay Fees: -$1.08
PayPal Fees: -$0.61
Item Cost: -$0.50

Net: $5.44

So in this case I profited $5.44 which amounts to 72.6% ($5.44 / $7.50)

But now let's look at a similar item selling for $18 and costing $1:

Received $21.25
Postage: -$2.77
Supplies: -$0.35
eBay fees: -$2.13
PayPal fees: -$0.92
Item Cost: -$1.00

Net: $14.09

So in this case I profited $14.09 which amounts to 78.3% ($14.09 / $18.00)

nowthatsjustducky · ‎05-17-2017

When I get back from my shipping and shopping, I will post a breakdown of how I make out with the little 99 cent items that I save my 250 auction listings each month for (gumball machine stickers, Heroscape Army Cards, and Natural American Spirit Tribute to the Endangered vignette cards). Even with single purchases, the net earnings may be surprising to some here. 🙂

If it works, sell it. If it works well, sell it for more. If it doesn't work, quadruple the price and sell it as an antique.

-- Ferengi Rule of Acquisition #80

7606dennis · ‎05-17-2017

Alas! The cost of everything has gone up over the years. Most businesses have had to raise their prices to keep up. Those offering products and/or services that consumers refuse to pay the higher prices for eventually go out of business. Sadly, there are many products and services that are no longer available because they were too costly to produce. Even sadder is how many of these will be lost to posterity because the craftsmen that produced them have died off and the art was not passed on because there wasn't the demand at the prices needed to be charged.

I've often wondered about how so much ancient knowledge and skill was lost and archaeologists are only now rediscovering things the ancients knew. Well we are experiencing the process every day. Someday in the future, archaeologists will dig through our landfills and ruins to find out what we actually knew and how we lived.

"It is an intelligent man that is aware of his own ignorance."

kathieskorner · ‎05-17-2017

The main reason your selling costs are "too high" is that you not only offer free shipping but you discount your items.

I've gone back and forth between listing with free shipping ($13.99) vs listing with charged shipping ($10.00 + $3.99), and have seen no difference in sales. For items that ship first class, media mail, or flat rate - my profit would be the same.

I never list an item weighing over 15 oz with free shipping unless it can go flat rate and I know how much to build into the price for shipping.

By charging calculated USPS shipping for items one pound or over - the buyer close by saves money - others can buy multiple items and save on combined shipping.

For what I sell free shipping usually wouldn't result in more sales.

iart · ‎05-17-2017

You're probably adding in the shipping costs which, depending on what you ship, can be very high compared to the value of what is sold.

Our costs, including shipping, are about 25% and we ship most items media or 1st class. So I could see a seller shipping low cost items priority would have much higher costs.

mr_lincoln · ‎05-17-2017

@jamie_1184 Where are you getting this "Selling cost" number? Is this from your Summary Page where they show you the amount of your Fees in real time?

Regards,
Mr. Lincoln - Community Mentor

iart · ‎05-17-2017

@jamie_1184 wrote:
okay thank you that was very helpful. Just out of curiosity for other's opinions. If we take your item you got for 50 cents and sold for 7.50 than you are more than likely profiting close to a little over $2.00. Are you satisfied with that amount as a profit? - or should I ask, do you believe that is a good profit?

No! You'd probably be better off flipping burgers. Unless you're stuck at home like a homemaker or disabled, or maybe retired. I figure it takes us about 20 minutes to buy, describe, photo, list, pack and ship an item. 3 per hour. So that $2 profit, for us, 6 bucks an hour, wouldn't even be minimum wage.

pinkrose442savings2018 · ‎05-17-2017

@iart wrote:
@jamie_1184 wrote:
okay thank you that was very helpful. Just out of curiosity for other's opinions. If we take your item you got for 50 cents and sold for 7.50 than you are more than likely profiting close to a little over $2.00. Are you satisfied with that amount as a profit? - or should I ask, do you believe that is a good profit?
No! You'd probably be better off flipping burgers. Unless you're stuck at home like a homemaker or disabled, or maybe retired. I figure it takes us about 20 minutes to buy, describe, photo, list, pack and ship an item. 3 per hour. So that $2 profit, for us, 6 bucks an hour, wouldn't even be minimum wage.

You didn't factor packing materials, cleaning materials, ink for printing USPS labels, I buy half of my mailers...20 minutes...I don't know...

myescape · ‎05-17-2017

with each item you need to take your cost to aquire,all your overhead costs(all fees,materials,etc) and the desired profit add them together to get your sale or start price

This is a user to user board not eBay employees.
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When people show you who they are, believe them

rolenboy01 · ‎05-17-2017

Shipping costs are what is killing me, some items you just cannot charge shipping on they won't sell.

coolections · ‎05-17-2017

@jamie_1184 wrote:
when I look over my selling cost it show's that the total amount for the past 30 days is $460.00 and the total amount I sold is a little over $900.00. That is pretty close to half . and No I do not use any extra things in my listings or titles-always just the basic.

That's impossible. There is something you are not seeing correctly.

coolections · ‎05-17-2017

So the $460 includes the cost of shipping ? That is the problem. Charge your buyers the shipping. You should never be giving "real" free shipping. The word "free" is just a selling gimmick and should not actually be free.

femmefan1946 · ‎05-18-2017

Shipping costs are what is killing me, some items you just cannot charge shipping on they won't sell.

Yep.

Some items are just not made for mail order.

And online selling is still mail order.

Heavy items and fragile items and huge items are poor candidates for shipping due to packing and postage costs.

Do US sellers get discounts on Paypal shipping labels?

Here in Canada we get from 5% to 18% off PO counter prices on Paypal labels. And we don't have to take them to the PO, since it is safe to drop them in the nearest postbox.

Personally, I don't use shipping labels often. Confirmation of Delivery is very expensive here, so I use Cookie Jar Insurance and discounted mint postage stamps. (Under another ID I sell these at 20-25% off PO counter prices. Obviously, I can buy them even cheaper.)