PROFIT MARGINS ON EBAY???

Hi All -

I was reading a post last night and 2 guys were argueing about selling on ebay because one was selling items and not taking into account, listing fees, final selling fee and the paypal fee for the receipt of payment.
I would like to know do people use a rule of thumb (is there even a rule of thumb) when trying to calculate a profit margin??.... by this i mean lets say you buy a game for £20.... i would be guessing when taking into account all fees you need to sell the game for at least £23 to break even, ????.... hope that make sense?
I suppose im saying is there a calculation or even a percentage that you need to be considering when you put an item up on a buy it now price to receive profit???

19 Comments

Banned

More than £23!!! Check google for fee calculators!!

ebay take just under 10% of the final total as fees, plus what ever the cost is for listing.

Original Poster

So if they take just under 10% then that means it would cost 0.40p to list and lets say say you bought something for £20 and sold it for £25.... then that means £25 minus £2.50 (10%), minus 0.40p listing fee means your profit is £2.10 ???????????

But then there is paypal fees on the receipt of £25?

nick1981

So if they take just under 10% then that means it would cost 0.40p to … So if they take just under 10% then that means it would cost 0.40p to list and lets say say you bought something for £20 and sold it for £25.... then that means £25 minus £2.50 (10%), minus 0.40p listing fee means your profit is £2.10 ???????????But then there is paypal fees on the receipt of £25?



And isn't the game section free delivery only?

If you bought a game for £20 and sold it for £25:

40p listing fee
£2.50 10% eBay fvf 
£1.05 Paypal of 3.4% plus 20p
£1.32 Royal Mail postage
Total: £5.27

Those are all basic costs costs assuming you didn't get an overseas buyer in which case the postage and Paypal fees go up. Plus you are probably competing in an already saturated marketplace and chances are a power seller will see your price and list theirs undercutting you by a quid or so, plus you have to factor in timewasters, non-payers, possibility of re-listing, chargebacks, item getting lost in post etc.

My own general rule of thumb when listing on eBay if I don't have a calc handy is to deduct 20% off the price I would be selling it for, that usually gives me an indicator whether it's worth it or not.

10%, don't know why I bother , just got a charge for £16, I sell the stuff they make the profit.

Original Poster

Excellent thanks - i know it can be quite specific depending on various variables etc etc... but if you say you use the 20% rule then i think i will do the same... thanks for the advice !!!

fluffyundacrakas

If you bought a game for £20 and sold it for £25:40p listing fee£2.50 10% … If you bought a game for £20 and sold it for £25:40p listing fee£2.50 10% eBay fvf £1.05 Paypal of 3.4% plus 20p£1.32 Royal Mail postageTotal: £5.27Those are all basic costs costs assuming you didn't get an overseas buyer in which case the postage and Paypal fees go up. Plus you are probably competing in an already saturated marketplace and chances are a power seller will see your price and list theirs undercutting you by a quid or so, plus you have to factor in timewasters, non-payers, possibility of re-listing, chargebacks, item getting lost in post etc.My own general rule of thumb when listing on eBay if I don't have a calc handy is to deduct 20% off the price I would be selling it for, that usually gives me an indicator whether it's worth it or not.


I only sell junk on ebay, stuff that I've used and don't want any more. That way if I make a profit it's a bonus. If you're looking to making a profit, I'd start a proper business online. Yeah maybe sell a few bits and pieces on ebay to advertise your website, do a 10% off first purchase on website etc, but definitely not use it to make a profit (unless buying knock off goods from Hong Kong lol)

to calculate fees,
1. Find out listing fees
2.10% taken by ebay
3.and use paypal fee calculator to see how much they take paypal

btw p&p charges are to the buyer you state the price

better off going to a car boot sale

Banned

Joey Bloggsy

10%, don't know why I bother , just got a charge for £16, I sell the … 10%, don't know why I bother , just got a charge for £16, I sell the stuff they make the profit.



sell it at a higher price so you make profit too?

Not much use selling on Ebay unless you plan to sell thousands of items... Very very slim profits cause Ebay + Paypal are so greedy!!

colinsunderland

sell it at a higher price so you make profit too?



your right ofcourse, maybe thats why my mobile sold within 1 hour of listing.
That's another reason why fleabay is rubbish for deals nowadays.

Banned

Joey Bloggsy

your right ofcourse, maybe thats why my mobile sold within 1 hour of … your right ofcourse, maybe thats why my mobile sold within 1 hour of listing. That's another reason why fleabay is rubbish for deals nowadays.



well whoever bought your phone obviously got a good deal!
There's still plenty of bargains, I find it best to look at times when not many people are about - like Friday/Saturday nights after about 8pm, weekday mornings between 8 and 9 and between 4 and 6 weekdays (people on way to/from work)

Original Poster

That seems to be the common statement i hear on this site.
But please put me straight because i thought that because ebay has alot more users/potential buyers, then its still a good idea to sell on there because your more likely to get a sale??.....and besides realistically whist the fees are bad, where else can you actually sell succesfully online??

ei8hty5ive

Not much use selling on Ebay unless you plan to sell thousands of … Not much use selling on Ebay unless you plan to sell thousands of items... Very very slim profits cause Ebay + Paypal are so greedy!!


Banned

nick1981

That seems to be the common statement i hear on this site.But please put … That seems to be the common statement i hear on this site.But please put me straight because i thought that because ebay has alot more users/potential buyers, then its still a good idea to sell on there because your more likely to get a sale??.....and besides realistically whist the fees are bad, where else can you actually sell succesfully online??



Thats the thing though, the fees aren't bad really, as you get a much higher price than you do on other auction sites.
If you sell something on ebay for say £10, and ebay/paypal take £2 in fees you get £8. Most the time using other site you wouldn't even get up to £8, so even if they are free, you still make less.

I tried using ebid for a week a year or so again, free to list, and only 3% FVF.
I listed exactly the same items on ebid and ebay, all 7 day auctions, all finishing at the same times.
The stuff on ebay brought in £710, even minus fees etc it was still about £570
The same stuff on ebid, half didn't sell and the other half went for about a third of what the final price was on ebay, so got about £130 - 3% fees. Needless to say I haven't wasted my time on ebid any more.

Original Poster

I always enjoy listening to both sides of an agruement - but you have offered a clear proven demonstration that whilst lots will bicker about ebay fees - the evidence is that selling on there can still be very beneficial !..... i would be interested to hear somebody with another side to the arguement tho..........................................???

colinsunderland

Thats the thing though, the fees aren't bad really, as you get a much … Thats the thing though, the fees aren't bad really, as you get a much higher price than you do on other auction sites.If you sell something on ebay for say £10, and ebay/paypal take £2 in fees you get £8. Most the time using other site you wouldn't even get up to £8, so even if they are free, you still make less.I tried using ebid for a week a year or so again, free to list, and only 3% FVF.I listed exactly the same items on ebid and ebay, all 7 day auctions, all finishing at the same times.The stuff on ebay brought in £710, even minus fees etc it was still about £570The same stuff on ebid, half didn't sell and the other half went for about a third of what the final price was on ebay, so got about £130 - 3% fees. Needless to say I haven't wasted my time on ebid any more.


your right nick in the sense that you can get something for the item your selling , but my main grumble is that they get a very good cut on the deals and that in turn makes things a bit more expensive for the buyers as well.
Whereas before I wouldav bought things on there without looking too hard anywhere else , now I find things cheaper else where.

Another point is it offers a reasonably good protection system against fraud.

Lastly it also helps finding things that are not so common and gives you a wide choice to choose from on other items.

It just doesn't feel like a bargain site anymore, not like it used to be imo
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