@oroax-corporation wrote:
I want to know whether a 36% deduction in monthly eBay fees (including shipping costs) is high or reasonable, how can I evaluate this? We purchase shipping labels through eBay, which adds to the cost. Is this percentage typical for overall sales, or are we paying too much?
IMHO your question is fundamentally flawed.
Generally speaking, on eBay you pay final value fees of 40 cents plus 13.25% of the total amount the buyer pays. That is basic math, so there is no point in asking whether it is "reasonable" and there is really nothing to "evaluate" - you either agree to pay those fees, or you don't list it.
The cost of shipping is not an eBay fee. It is the cost of buying a shipping label from the carrier. And again, the carrier charges what they charge - you either agree to pay that postage, or you don't list it.
Let me give you two examples:
1) You buy an item for $25 and list it for $100 with free shipping and it costs $10 to ship. So you collect $100, and pay $13.65 in fees and $10 in shipping. After the cost of $25, you end up with $51.35 and in your eyes you paid 48.65% in "fees".
2) You buy an item for $25 and list it for $150 with free shipping and it costs $50 to ship. So you collect $150, and pay $19.88 in fees and $50 in shipping and you net $54.72 and in your eyes you paid 63.52% in "fees".
Here is how I view those same transactions:
In example 1, you invested $25 and kept 79% of your possible profit of $65 and lost 21% of it.
In example 2, you invested $25 and kept 73% of your possible profit of $75 and lost 27% of it.
You certainly need to evaluate shipping costs, but co-mingling your "free shipping costs" with fees just distorts the numbers.
