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What percentage of your sales do you spend on selling costs?

Mines is 26.3% for this year so far, with free shipping on most items. Just curious how it compares to more experienced sellers on here.

Establishing Trust is Better than any Sales Technique..
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What percentage of your sales do you spend on selling costs?

As a general rule of thumb,

I wont sell anything unless i can AT LEAST  double my money (100% profit) after ALL of my  selling costs. 

There are a few cases where i may make less and a few cases where i may make more. 

Highway Patrol - Junior Brown
Message 2 of 14
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What percentage of your sales do you spend on selling costs?

What do you mean by "selling costs". To me that is the FVF and subscription fees I pay eBay. Nothing else counts as "selling costs". In that case it should be around 12% or so.

 

Postage is shipping costs

Inventory is  cost of goods sold.

 

"Laissez-faire capitalism (AKA The Great Material Continuum) is the only social system based on the recognition of individual rights and, therefore, the only system that bans force from social relationships." ~ Ayn Rand
Message 3 of 14
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What percentage of your sales do you spend on selling costs?

I can see why you might want to figure it with shipping, since you have free shipping....... but that isn't the normal at least for me......

 

I figure it more as Richard does, only the actual fees (don't forget the store subscription).....

 

Hawaii says doubling what you pay for an item may sound good.......if I pay $1.....and have $2 profit after all the fees and other expenses..........well that doesn't sound great to me  which is the reason I don't like dealing with %s.  ........and I buy alot of $1 items........  If you sell large quantities.......I can see the value......but it's going to take a large number of sales to actually make any money.

 

Too early to do the math...I'm sure someone will come along with it, but I aim for a $25 minimum sales price (excluding shipping).....for a $1 item.  I miss on that because sometimes the $1 item simply isn't worth $25...and sometimes I list it, sometimes I donate it.  I do feel that have some low priced items attract "looks" at other stuff, so not while perhaps not so profitable, it may help in the long run.....

 

just thoughts.......

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What percentage of your sales do you spend on selling costs?


@anytime-buys-official wrote:

Mines is 26.3% for this year so far, with free shipping on most items. Just curious how it compares to more experienced sellers on here.


When you include the free shipping into the overall cost of doing business, I think 26.3% is not a bad number. I run about 23% and I ship quite a few larger items.  

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What percentage of your sales do you spend on selling costs?

Here is just the opinion of one person.....

 

"Selling costs" IMO are all costs associated with selling on a given platform. That includes FVF's, store fees, promotion fees, CC processing fees, ect. 

 

Though really, those numbers only help a seller understand what the COST of selling on a particular platform IS, not what PROFIT is. Those numbers are useful when trying to figure out what platform to use to sell a particular item. If you are only selling on ONE platform, it's useless to worry about that number. 

 

Net profit is what most sellers pay attention to. That's the number derived from subtracting ALL costs from the gross sale price. This is the number I am concerned with and track. 

Message 6 of 14
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What percentage of your sales do you spend on selling costs?

In the sellers hub under the performance tab  you will find a breakdown of your selling costs.  I do not include shipping in my item price as I keep that separate.  It benefits those buyers that don't have state sales tax charged on shipping and handling.  My selling cost has consistently been around  37% for quite some time.  However the net sales number does not include the cost of my inventory.

Message 7 of 14
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What percentage of your sales do you spend on selling costs?

That’s fairly close to how I do it - I want to make a minimum of around $20/hour, so I shoot for items I can sell for about $35.

 

Like you, I do pick up a smattering of items likely to sell for less - mainly collectibles. I just figure the more categories then likely the more eyes.

Message 8 of 14
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What percentage of your sales do you spend on selling costs?


@anytime-buys-official wrote:

Mines is 26.3% for this year so far, with free shipping on most items. Just curious how it compares to more experienced sellers on here.


About right. 

 

Our CPA created a tax burden rate per item.  Our net/net hovers in the 70-72% range w/o the tax burden rate applied.  Shipping costs have skewed that in 2021 and my cost burden there is 12% higher thru 7/31 budgeted.  Shipping tends to be our wild card right now - supplies are really high.

 

Like others, I like to see profit broken down without shipping, without tax burden, etc. 

 

 

 

 


....... "The Ranger isn't gonna like it Yogi"......... Boo-Boo knew what he was talking about!


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Message 9 of 14
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What percentage of your sales do you spend on selling costs?


@anytime-buys-official wrote:

Mines is 26.3% for this year so far, with free shipping on most items. Just curious how it compares to more experienced sellers on here.


IMHO we need to be precise when answering this question, because

 

a) "sales" can be an ambiguous term; and

b) counting the cost of postage as a "selling costs" can distort the picture

 

Let's look at two examples: 

 

Seller A lists an item for $10 and charges $10 shipping, and after all expenses nets $5. 

Seller B lists an item for $10 and charges $1 shipping, and after all expenses nets $5. 

 

By the calculation used by some sellers here, seller A's selling costs were $15 and his sales were $20, so he paid 75% of his sales in selling costs. 

 

And under that same calculation seller B's selling costs were $6 and his sales were $11, so he paid 55% of his sales in selling costs. 

 

But in the end, both sellers sold an item for $10 and made $5. So I would argue that the net should be compared to the selling price, not the total amount received

 

In other words, I would argue that both of these seller paid "costs" of 50%. I think this is the most meaningful way to assess my eBay activity.

 

That being said ... 

 

The fact that you are offering free shipping means you and I would be comparing apples and oranges unless you considered your "sales" to be the item price after subtracting the actual cost of the postage.

 

Using my formula, my selling costs are 22% before cost of goods sold. 

Message 10 of 14
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What percentage of your sales do you spend on selling costs?

I thought mine was high at 35% Shipping and Promotions really take a big cut out of our sales

Message 11 of 14
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What percentage of your sales do you spend on selling costs?

2021 thread.  Op is no longer. 

Message 12 of 14
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What percentage of your sales do you spend on selling costs?


@ckimodog wrote:

2021 thread.  Op is no longer. 


Well, that is a bummer/unfortunate.  Another Seller gone......


....... "The Ranger isn't gonna like it Yogi"......... Boo-Boo knew what he was talking about!


Posting ID Only.......
Yes, I have no Bananas, only Flamethrowers.......
Message 13 of 14
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What percentage of your sales do you spend on selling costs?

Hi everyone,

 

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.

 

Thank you for understanding.

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