If you are selling on eBay as your home business, you’re probably aware of the various costs associated with eBay selling. For everything you sell on eBay, there is a list of costs associated with that.
Insertion Fee – Commonly called the “Listing Fee”, this is the amount eBay charges to post your listing. eBay calls this the “Insertion Fee”.
Final Value Fee – This is the percentage that eBay takes out if your item sells. Final Value fees are based on the total before shipping. Final value fees vary depending on the type of item you’re selling and whether you sell your item from a standard or a store listing. For a table of eBay listing fees, see the eBay Fees page and the eBay Store Fees page.
PayPal Fee – If your buyer pays by PayPal, there will be a PayPal fee. The PayPal fee is based on the total amount including shipping. PayPal fees will depend on the type of PayPal account you have.
Cost of Item – How much did the item cost when you bought it?
Cost of Shipping the Item – How much does it cost to ship to the customer (Freight Out)? Ideally, you should be charging the same amount to the customer. In an ideal world, they would wash. Of course, this isn’t an ideal world, so keep an eye on this to make sure you’re covering your shipping costs on the average.
Cost of Getting the Item Shipped to You – How much did you have to pay to get the item shipped to you when you bought it (Freight In)? This cost is often overlooked, but it’s a cost just the same. Many sellers add this into the cost of the item.
Cost of Supplies – What about the boxes, bubble-wrap, foam peanuts, and other materials you use to ship the product? It may be tempting to just dismiss these as minor costs, but they can really add up and they are highly consumable. Most high volume eBay sellers buy these types of supplies in bulk from wholesale sources and consider them part of the cost of doing business. Nevertheless, they are a cost to be aware of.
In some cases, other costs might apply, for example consignment costs or drop ship fees. Being aware of all costs in your eBay selling will help you get a ‘reality check’ on your eBay profitably. Without keeping an eye on all the costs, you may be actually loosing money on eBay transactions. Here is a handy set of web-based eBay Profit Calculators to get you started! If you want a powerhouse eBay calculator that gives you an advanced systematic approach to eBay profit and cost management, try the ProfitCalc software program (link here). For techniques on researching selleable products and therefore maximizing your eBay profits, please see the Guerrilla eBay Research System.
Happy New Year and Happy eBay’ing!