cancel
Showing results for 
Show  only  | Search instead for 
Did you mean: 

what level of sales $ do you need to break even when opening a basic level ebay store"

Not too good at math but it seems like you would have to sell at least $20,000 a year to just break even with paying the basic level fees.....otherwise it's more cost effective to simply list items....is my thinking straight?

Message 1 of 60
latest reply
1 BEST ANSWER

Accepted Solutions

what level of sales $ do you need to break even when opening a basic level ebay store"

Too many variables to give you an accurate total.

 IF you can consistantly list 120 plus items a month and have gross sales each month of at least $1500 with free shipping, IT is an option.  If you can't, I would stick with the basic 50 free plan.  

View Best Answer in original post

Message 16 of 60
latest reply
59 REPLIES 59

what level of sales $ do you need to break even when opening a basic level ebay store"

Yes, you are thinking right.

 

A store costs $20 a month with a 1 year agreement

 

You save 1% in FVF fees so you have to sell about $2000 a month to make it worth your while

 

You also get 250 free listings that are worth $50 in fees at .20 cents a listing.

 

If you're serious about selling on eBay a store is a MUST. . .

Message 2 of 60
latest reply

what level of sales $ do you need to break even when opening a basic level ebay store"

http://www.fees.ebay.com/feeweb/feeillustrator

Everyone has options. Just be sure the best option is right for you.
Message 3 of 60
latest reply

what level of sales $ do you need to break even when opening a basic level ebay store"

Table assumes BIN listings onlyTable assumes BIN listings only

That's my insertion fee graph ... number of listings.

Remember that store fvf is discounted 

penguins_dont_fly is a Volunteer Community Mentor
Buying and Selling since 2013

Message 4 of 60
latest reply

what level of sales $ do you need to break even when opening a basic level ebay store"

You sem to be overlooking the potentially significant savings in Final Value Fees.  If you list in a category with low FVFs, then sales of just a few hundred dollars a month can pay for a Store subscription.

 

For instance, in cameras and some electronics categories where the FVF rate is 6.15% (vs 10% for non-Stores), the final value fee on sales of $650 would be under $40.  For non-stores the FVF would be $65.  So that's a savings of $25 which is enough to pay for a month-to-month Basic  Store subscription.  

 

In categories where the FVF rate is 4%, you'd need less than $420 in sales in order to recoup your $25 (i.e., $42 vs $16.80 in FVF).  

 

On the other hand, if you're selling  in a category with a FVF rate of 9.15%, then you'd need monthly sales of nearly $3K in order to make up that $25 subscription fee.

Message 5 of 60
latest reply

what level of sales $ do you need to break even when opening a basic level ebay store"

Color me stupid, but I look at it much more simply.

 

Once I make $20 after fees, the store is paid for. Since I sell low cost items, that's two to four sales. After that I'm done, the store is paid for.  With the stuff I sell, it has to be available when someone comes along to see it. 50 free listings a month just doesn't do that. Stuff can't sell if it isn't listed. Besides, the FVF is lower, even if only 1%, and I can do a running buy three get free shipping for all my cookbooks. Can't do that without a store.

 

Yes, I could list on more accounts, but I already sell on three, I don't need and can't handle any more.

The easier you are to offend the easier you are to control.


We seem to be getting closer and closer to a situation where nobody is responsible for what they did but we are all responsible for what somebody else did. - Thomas Sowell
Message 6 of 60
latest reply

what level of sales $ do you need to break even when opening a basic level ebay store"

Color me even dumber I pay for two premium stores $1420.00 a year. Jan. sales covers that amount with the other 11 months belonging to me.....

Message 7 of 60
latest reply

what level of sales $ do you need to break even when opening a basic level ebay store"

@pipilo02

Yep it's math, and not easy math.

There are insertion fees to consider, and FVF also.

With a basic store you get 250 FP and the same for auction.

So if you can list that many items it helps.

If you do GTC, they will roll over, so less work.

 

I had a store for 6 years, just ended it this spring.

And with a store you get other extras,

Markdown Manager, you can set up special sales, in seconds.

Message 8 of 60
latest reply

what level of sales $ do you need to break even when opening a basic level ebay store"

And one last thing to add - the cap on FVF's with a store is 250.00, and 750.00 without one. 

 

So just selling one item over 2500.00 per month pays for the store.

 

_____________________________
"Nothing is obvious to the oblivious"
Message 9 of 60
latest reply

what level of sales $ do you need to break even when opening a basic level ebay store"

Having an eBay store does not Increase sales as eBay would have you believe, Remember, these are the same people telling you to start your Auctions at .99 cents, Ship for free, and offer 60 day returns, just to name a few. Nobody needs a store here to make money, and the only people who seem to be making out on these suggestions is eBay. Good Luck to you.

Message 10 of 60
latest reply

what level of sales $ do you need to break even when opening a basic level ebay store"

That seems incredibly high.  You do get a much better deal with a store.  If oyu're selling any more than 15 items per month, or $400, you need a store.  My fees without a store selling $750/month were about $200.  With a basic store, slightly less.  Premium store at $1200 in sales, $165.  So much better.

Message 11 of 60
latest reply

what level of sales $ do you need to break even when opening a basic level ebay store"


@pipilo02 wrote:

Not too good at math but it seems like you would have to sell at least $20,000 a year to just break even with paying the basic level fees.....otherwise it's more cost effective to simply list items....is my thinking straight?


We cannot possibly determine a seller's net profit based only on his gross sales amount, so we cannot possible answer your question. All we can do is speculate. 

 

But assuming the basic store costs $19.95 per month for a year, you would need to earn $239.40 in profit in order to cover your store fees for a year. 

 

Some sellers could have $500 in sales and make $239.40 in profit. Others could have $100,000 in sales and still not make anything. 

 

For instance, if I were to start paying for a basic store right now and my sales continued at the same pace as the last few years, it would take roughly $350.00 in sales to cover the additional cost of the store. 

Message 12 of 60
latest reply

what level of sales $ do you need to break even when opening a basic level ebay store"

I think everyone is over thinking things here except a couple of sellers.

 

I pay roughly $20 for a basic store - 250 BINs and 250 auctions.

 

If I didn't have a store - I only get 50 free listings - so to list 200 more items at just BIN - I'm paying an additional $60 a month for a 30 day listing.

 

OP - if you are listing over 120 items - sign up for a store - you also have the use of markdown manager - ect..

Message 13 of 60
latest reply

what level of sales $ do you need to break even when opening a basic level ebay store"

I base my decision on math, but instead of using sales totals, I use listing fee totals.   I have one ID in which the 50 free per month easily covers.   My ID with a store has more listings, so my math mostly involves how much would those listing fees cost me if I didn't have a store.  I go from that point to decide if the store makes sense.  

 

The lower fvfs are involved, but for my categories that isn't that much of a factor.  I also like the shipping supply coupon & markdown manager.

Message 14 of 60
latest reply

what level of sales $ do you need to break even when opening a basic level ebay store"

Your first net earnings of $19.95 or $24.95 (depending on your subscription plan) is your break even point.  As far as account costs, everything that is not fees after that is gravy.

 

I start my spreadsheets each month in the red, declaring the sub cost a sunk expense.  On my non micro payment accounts, they are in the black usually before the first week of the month is up, aka only takes one or two sales before the subscription cost is covered.  There is no need to try to divide your costs up between as many listings as possible (that way lies madness) when you can just sink that total cost as fixed from the getgo.

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
Message 15 of 60
latest reply