Selling costs to high!

[jamie_1184]

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?

[*coins]

@jamie_1184

eBay charges a 10% FVF once the item sells, and PayPal charges a 2.9% +$0.30 fee per item, and that is definitely not half. I see you have over 750 items for sale, so that means you probably have a premium store, which costs $60 a month. Are you adding your store fee to the "selling costs"? Are you buying extra things for your listings?

[duchess-at-speakeasy]

No problem here.  I pay only the 10% eBay FVF and the Paypal fee of about 3%.  I never pay insertion fees and I don't use any add-ons.  Naturally, I factor these costs into my asking price and shipping and handling amount.

~~C~~

[nowthatsjustducky]

The OP's FvFs should only be anywhere from 4% to 9% (or is that 4.15% to 9.15%) depending on category, since she has a store.  Additionally, any of the OP's items that are definitely going to be a total price of $12 or less should be going to a PayPal micro payments account, instead of the standard 2.9% plus 30 cents rate account.

That said, if they are not paying for those extra ripoff features that the pointy hairs here like to sucker sellers into using, then the disparity is between the OP's product costs and asking prices.  If that is the case, they need to raise their prices.  Take some time to calculate first how much profit you want to shoot for on each item; and using that as your baseline, build your price from there, adding your product's cost, other expenses you may want to include, shipping (for those items that are listed with "not really free" shipping, then eBay's fee, the PayPal fee, andfinally a little extra to allow for pricing "wiggle room" if you want to consider running sales with the markdown manager or best offer in the future.

[jamie_1184]

I have over 900 items on my store and yes I use the premium. Most of my item's I sell for less than $20.00. But 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. once in awhile I do more than one catagory but I understand that cost extra. 

[jamie_1184]

I have def. tried this, but always run into the problem of finding the same item for much cheaper than expected from another seller, therfor I feel that I must lower my price in order to sell the item, which brings me back to my first problem of just not making enough profit for the cost's. 

[nowthatsjustducky]

Unless there are a metric buttload of the same item available, the fact that someone is selling for a lower price should not matter.  I tend to price on the high end, or midrange if there are a notable amount of "competitors".  I still make my sales despite not engaging in the race to the bottom.

[slati_2013]

If you are not making much profit, you are then spending too much to acquire what you sell. I hang around many auction sites. Other than true government websites, most have fees far higher than eBay. For shipping cost, the USPS has many options you should consider. Flat rate boxes and envelopes, Regional boxes, your own box etc. If you are doing it right, your shipping costs should be a small part of your costs. If you can't afford it, then charge for shipping or include it in the total price.

[luckythewinner]

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@jamie_1184 wrote:

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?

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On an annual basis, I put 75+% of my selling price in my pocket as profit. That is after deducting all eBay fees, all PayPal fees, all packing and shipping costs, and the cost of the items sold.

Half of my inventory was obtained for 50 cents or less, and usually sells between $7.50 and $25. Rarely have I invested for than $2 in an item fo resale.

75% of my inventory ships in a simple mailer or envelope as Media Mail or First Class for $2.50 to $3.50.

Some people tell me I am lucky because I happen to have inexpensive items with inexpensive shipping and a healthy markup. But there was nothing lucky about it - it took a lot of work. I chose to evolve my business in this manner because I saw where things were heading. I searched out inventory and researched product areas that would fit these criteria.

[jamie_1184]

Just out of curiosity , if you dont mind me asking, what do you think a fair profit would be on an item your selling. 

[klassic*kids]

@jamie_1184

Hi Jamie -- if your selling costs are $460 then it must be accounting for not only fvfs, but shippinng costs as well.  I hope you aren't paying much to procure your items.  There's a chart in SH that breaks down all the costs and net profits -- you may want to check that out.  I found the pie chart very helpful.

[jamie_1184]

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?

[nowthatsjustducky]

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@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?

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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.

[thatsallfolks]

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@jamie_1184 wrote:

I have over 900 items on my store and yes I use the premium. Most of my item's I sell for less than $20.00. But 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. once in awhile I do more than one catagory but I understand that cost extra. 

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Your eBay fees on $900 in sales, including your store fee, shouldn't be more than $150. Your PayPal fees should be around $40. So if the rest is postage, that's your problem. You need to find a cheaper way to ship, or start charging buyers for shipping, or both.

[bubbleman2010 · Accepted solution]

Your merchandise won't support free shipping,but to many other rag merchants are doing it so you either play follow the leader and snag a few sales or add shipping and snag nothing....