eBay Sales and Fee Breakdown - Example Widget
I thought I would walk through an example of the numbers of an actual eBay sale which covers all fees and see what the actual profit was. In this example, it was a Vintage 1950s Smith Corona Sterling Typewriter. It sold for $126 and buyer paid a total of $156.81. An item I got at OMT Auction in wonderful condition, provenance, and buyer got a very fair deal.
So lets look at the numbers:
Buyer paid: $156.81 (Item $126.00, Shipping $20.55, Tax $10.26)
eBay Fees: - $21.65 (Final value fee $16.94, insertion fee 0.30, and promotional fee $4.41)
Actual shipping: - $16.43
My cost: - $5.00 (I got it for $5 or so at auction)
Shipping supplies: - $2.00 (Ballpark, but bubble wrap, box, it was heavy item…roughly close)
My time packing, etc. (Priceless, so wont include that here as it will skew the numbers)
If it were an international order, there would be an international transaction fee of 1.65%. As you can see, the shipping discount is approximately 20% which equates to $4.12 which reduces my selling fees from $21.65 to $17.53 shipping discounts with UPS are not unheard of at 40% - 50%. Overall, the shipping, fees and taxes account for almost 37% of total sales.
Net selling fees are 13.9%. A lot of eBayers I talk to say that eBay is taking 20% to 22%, but my math isn’t working that way.
My overall goal is to find items I can sell for double the cost at minimum. I have done well on this item being able to acquire it at a lower cost and thus increasing my margin. They all don’t go like this. So…when I sell an item, I may bring home 50% - 75% of that as profit. Again, this was a more profitable example, and most fit into a lower 25% - 35% margin which is my average after all costs.