Keeping track of the bottom line is a practice where many businesspeople fall into trouble. Sellers can get carried away with tasks — listing items, relisting items, shipping items, depositing the oney — and they may lose track of their bottom line. These sellers don't know whether the money they take in from sales does the two things it must do: (1) cover the cost of making the sale and (2) give them a little extra (a profit!). Making a profit is essential for running a business; not making one is traditionally the cause of the bulk of nationwide Chapter 11s, no matter what the size of the business.
In this chapter, I'm looking to refresh your memory about exactly what you're paying every time you list on eBay — and to remind you of the links to check back from time to time. (Keep this information at the top of your memory bank.) I have even put together a sample spreadsheet that reflects my common price points — with the costs involved. So I immediately now that when I sell a store item at $24.99, it's going to cost me $2.53 in total fees — plus PayPal fees.
In this practice, I give you tips on pricing strategies that help you cover expenses and make a profit, too. The first item on the agenda is to understand all the fees involved with running an e-business on eBay.
It doesn't seem so much, $.55 or so to list an item, and a small Final Value fee. Of course, a few cents go to PayPal. One ...