Want to make money online with eBay? Know your profit margins!
If you want to make money online with eBay, understanding your profit margins is crucial.
It's important to know roughly how much your items will sell for so you can work out how much you can afford to spend on buying stock and listing items -- and still make a profit!
Luckily, figuring this out boils down to a simple formula:
(Item Final Selling Price + Shipping and Handling Fee) - (Item Purchase Cost + eBay Listing Fees + eBay Final Value Fees + PayPal or Credit Card Fees + Shipping Costs) = Profit
Let's say you list a picture frame you bought for $2 at a garage sale with a starting price of $0.99 and a gallery picture (listing fees: $0.65). You then sell it for $10 plus $5 for shipping, incurring an eBay final value fee of $0.53 and PayPal Premier Account fees of $0.75. Let’s say it cost $3.80 to actually mail it in a bubble wrap envelope that cost you $0.20.