Profit margins

chancesare_2

campdave wrote: »

We'll have to agree to disagree. Thanks for the micropayments tip, I will have a look.

Final Value Fee on Ebay
Paypal 20p (for the account type you have)
Paypal final fee

Even just on those, the maths is wrong. That's without the listing fee (even for multi items) any taxes you pay.....the list goes on.

Agree to disagree if you like, but as this is a moneysaving site you may like to buy a calculator that works.

mcja

Ok...good business idea, bad money maker!! Time to rethink!! Still like ebay idea just maybe higher value products! For some reason thanks button gone, but thankyou all for your massively helpful advice.

I hope you continue to have success on ebay, however you work out your margins!!

campdave

chancesare wrote: »

Final Value Fee on Ebay
Paypal 20p (for the account type you have)
Paypal final fee

Even just on those, the maths is wrong. That's without the listing fee (even for multi items) any taxes you pay.....the list goes on.

Agree to disagree if you like, but as this is a moneysaving site you may like to buy a calculator that works.

It seems we're coming at it from different angles. I'm talking about the price I pay and the amount I receive once I pay my fees. When I'm working out what I sell, I work it out before I pay tax and national insurance.

Sorry if what I've typed have frustrated you in such a way that you need to be rude in your replies.

theonlywayisup

There are more people on Ebay (albeit briefly) that think they make xyz% or xxp per sale, but few know how to work it out or even do it correctly.

For every item you have a listing fee. If you have a shop which costs a monthly subscription, your listing fees are lower. Nevertheless you have them and most conveniently forget about them when spouting profit percentages.

For every item you sell you pay a final value fee to Ebay.

For every transaction in paypal you pay a set fee plus a percentage. Micropayments are cheaper for items sub £10 ish. So the poster who was selling things at 99p was making a mistake paying 20p for each transaction.

For every item you post you should ensure you charge the correct postage. You should note that postage IS included in the percentage amount Paypal charge you for receiving the money.

For every item you send there are associated costs for packing. This may be a 1p mailer or a piece of bubblewrap.

Only a fool forgets to calculate the whole cost. Fortunately there are many fools, so those with a brain can make a go of it. Those without just think they are.

mcja

That's why i asked for help. Being a fool made me unemployed, I refuse to make that mistake twice in my lifetime.

theonlywayisup

mcja wrote: »

That's why i asked for help. Being a fool made me unemployed, I refuse to make that mistake twice in my lifetime.

I didn't mean you were a fool I meant that there are plenty who are.

Chrysalis

chancesare wrote: »

Your post inferred the amount you received was 99p.

I am sorry if I misinterpreted that. But your maths is still wrong.

However, you are paying 20p to paypal when you don't have to. Not good business sense whichever way you look at it.

Seems a lot of hate to paypal on here, before you assume that 20p is a ripoff I will keep it simple.

If I see a seller who doesnt accept paypal then I dont buy and move on. Paypal is incredibly conveniant and also fast. Its also cheaper than things like credit card merchants.

soolin

Chrysalis wrote: »

Seems a lot of hate to paypal on here, before you assume that 20p is a ripoff I will keep it simple.

If I see a seller who doesnt accept paypal then I dont buy and move on. Paypal is incredibly conveniant and also fast. Its also cheaper than things like credit card merchants.

No need to move onto a different seller, paypal is compulsory on all ebay listings apart from the motor vehicles categories.

campdave

Chrysalis wrote: »

Seems a lot of hate to paypal on here, before you assume that 20p is a ripoff I will keep it simple.

If I see a seller who doesnt accept paypal then I dont buy and move on. Paypal is incredibly conveniant and also fast. Its also cheaper than things like credit card merchants.

I'm assuming it's a reference to my paying 20p as a fee when I could be accepting the lower micropayment rate

I've rung paypal and will be applying for this today - on my most basic transactions, I'll be 12p better off, on 40-50 transactions per day, that's a nice saving.

Thanks for the advice.

theonlywayisup

Chrysalis wrote: »

Seems a lot of hate to paypal on here, before you assume that 20p is a ripoff I will keep it simple.

If I see a seller who doesnt accept paypal then I dont buy and move on. Paypal is incredibly conveniant and also fast. Its also cheaper than things like credit card merchants.

I think that not paying 20p reference to the person having the wrong Paypal account.

Why pay 20p per transaction for a 99p item? You don't have to. Pay 5p instead.

I can't see anyone in this thread hating paypal.