28% fees on a $2.58 item!?

[rocketscollectibles]

I used to calculate 15% as fees when i price my items to calculate the profit margin but i recently started to notice i was wrong and that items under $10 are more at like 20%+

Don't is this totally abusive and illegitimate?

I sold a $2.58 item and noticed my fees on it are 28%... For a $4.00 one it's still like 22%

I realised than when i source an item for $1.00 and sell it $4.00 (seems like a small good move at first), after fees ($0.91) and shipping/packaging ($1.50)(and i use discounted postage), i'm doing barely $0.60

Seems crazy that ebay taking $0.91 and i'm taking $0.60. That's a crazy cut. We're supposed to be able to source at $0.50 and sell at 800% we paid on cheap items!?

Sometimes i ask myself if ebay is really viable to sell on... I'll plan to slowly stop to sell cheap items this is too time consuming to end getting robbed like that. But any suggestion of the lowest item we should price?

I been suggested a lot to use free shipping at first, but as a card seller, i also wonder if a combined shipping model is not more appropriated. To lower shipping cost % and incitate to multiple items purchase. Free shipping model seems good when we have no under $5.00 items i feel, and items that are bought individually 

[ricarmic]

I think I've already mentioned this before in one of your other threads, but I don't sell anything less than $10. ($9.99)

I group smaller stuff into larger lots, minimum size $9.99.

[femmefan1946]

When your buyer pays you, you pay fees.

The first fee is a non-refundable 30c to Managed Payments (earlier to Paypal).

So there's 10% of your price already.

Then you pay 2,9% of $2.58. Another seven cents.

Then you pay 10 % of your selling price, another 25 c and of your shipping price another 10c.

Now if your item sold for $25.80 your total fees would be $4.50. (My arithmetic is very bad, check the figures yourself).

We're supposed to be able to source at $0.50 and sell at 800% we paid on cheap items!?

Well. Yes.

That's why over and over you will see sellers advising not to sell anything for less than $10. It's too expensive.

[rocketscollectibles]

It's hard in my category to have only $10+ cards to be honest. And personally my $7+ cards are the ones i'm selling the less. Everyone buy my $3-$6 in bad condition ones (a bit suprising). Just an assumption but bigger collectors may go for higher feedbacks and reputated sellers

I guess i'll have to choose at some point if i wanna go for higher items and free shipping, or cheap items with combined. But i feel like free shipping and cheap items are not a fit

I see many top sellers selling cheap cards, no one would do it if there's no way to do money with it

[doc-holmes]

I sell as a hobby only. I'll sell a $3 card and break even or lose a little, I really don't care. But if you're trying to profit? Nope. Won't work. The bigger ticket cards get profits.

[marnotom!]

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@rocketscollectibles wrote:

I see many top sellers selling cheap cards, no one would do it if there's no way to do money with it

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Is that all they're selling?  I doubt it.

Why don't you see stores that just sell bananas?  There's no money in that.  There is money in a wide mix of grocery and sundry items, though.  Some people may visit the store just for bananas, some people may buy several other items as well.  It's the mix and volume that ultimately matter.

[femmefan1946]

Not $10 cards.

$10 bundles.

And once again. Free Shipping means you are folding your cost of shipping into your asking price.

Which sells best?

A $7 card with $1.50 shipping?

An $8.50 card with Free Shipping?

or even

An $8.99 card with Free Shipping?

 An $8.99 card with Free Shipping and Best Offer set at offers over $8.49?

And if you can make that $7 card from one you bought for 50c, or if you can turn a $5 box of commons  into four $10 boxes of commons, then you might start making money.

And this may not have come up before but Bubblewrap Ain't Free. Which means you have a packaging cost in your shipping price. So even if you are putting only $1.30 in stamps on the envelope, you still had to find the envelope and the stiffener.

[rocketscollectibles]

A $7 card with $1.50 shipping?

An $8.50 card with Free Shipping?

This is a sentence i see often while reading on the net. And to be honest i start to think that $7 + $1.50 may be more attractive to buyers, because at the first look it look cheaper, it's like pricing $7.99 instead of $8.00, you fool the brain. Also with a shipping cost the total price seems more justified, while free shipping price seems boosted without any justification. Not every buyer knows that free shipping is not free

There's also the fact that no combined shipping is offered with free shipping, it's useless to buy multiple items at once for a buyer. Free shipping really is a single item purchases model to me, while shipping cost + combined is a multiple items purchases model

I'm keeping free shipping just to not have to send invoices everytime and because i like to keep it more simple to buyers... But i'm really thinking that having a shipping cost + combined offered may be the best for me. At least for now with the average items price i have

[rocketscollectibles]

Got a question about combined items purchase if anyone can answer i dont wanna start a thread for this

If we sell multiple items to a same person on one order, are we still paying .30 fees per listing or just once cause its one order?

[recped]

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@rocketscollectibles wrote:
Got a question about combined items purchase if anyone can answer i dont wanna start a thread for this

If we sell multiple items to a same person on one order, are we still paying .30 fees per listing or just once cause its one order?

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Depends.......

If a buyer adds items to the cart and makes a single payment then there is one fixed fee charge

If a buyer wins multiple auctions and pays for all of them with a single payment there is one fixed fee charge

If a buyer pays for multiple items individually then each payment will have a fixed fee charge.

Back in 2019 there was a VERY brief period where eBay proposed a fixed fee per item instead of the fixed fee per transaction, they reversed themselves on that one over the course of a couple of weeks.

[rocketscollectibles]

Thanks, makes sense

If not we could have just end listings and bundle to save the 0.30 fees which would have been dumb to force sellers to do that

[femmefan1946]

i start to think that $7 + $1.50 may be more attractive to buyers, because at the first look it look cheaper,

And you may be right- because there is no one answer.

Personally, I am annoyed when I buy online, only to find my $50 purchase did not include $8 shipping and $6.50 tax.  But others like the "great price" version.

There's also the fact that no combined shipping is offered with free shipping,

Because you are thinking as a buyer -- not like a buyer, which sellers should always consider-- but as a buyer.

The "free shipping" lover usually does not think about shipping. If he does, he can ask you for a deal.

Now.

We are not allowed to reduce the cost of shipping, but we are allowed to reduce the cost of selling.

So.

Your customer has chosen 10 cards at $10 each with Free Shipping. He asks for a combined sale discount.

You know your Free Shipping includes  $2 for each card. Postage on each card would actually be $1.50.

Which allows you to make the customer happy by selling him 10 cards for $90.00

Now instead of receiving $20 to ship the cards, you receive $10 to ship the cards. The cost of shipping all 10 together will be $$7.50.

You just made $2.50 on shipping instead of $12.50. A profit is a profit.

Note that if you sold each separately, you would payout $15.00 for shipping.

Your customer got his discount. He is happy.

You covered your shipping cost and are happy.

You put the $2.50 profit in the Cookie Jar for a less happy transaction.

[beavosorus]

You really need to calculate your "lowest sale price".  For me it is $2.29.  If I cannot sell a card for that price, I don't list it.  With all the fees and cost of shipping, this is my "break-even point".  The hope is they buy more than one in that purchase, but if they don't I am not out any money.  It is all advertising and building trust with your customers at these lower prices.

Yes there is the cost of labor and you need to keep that in mind.  What is your labor worth to you?  

Also what is your "item not recieved" rate?  You always need to calculate that into your sales.  You could walk away owing in the end.

[simplynightbird]

.

[rocketscollectibles]

We are not allowed to reduce the cost of shipping, but we are allowed to reduce the cost of selling.NNo

So.

Your customer has chosen 10 cards at $10 each with Free Shipping. He asks for a combined sale discount.

The thing is that it never happens, at least for me. Not everyone is ebay experimented and knows about shipping and discounts. Most of my buyers are very low score profils personally. I had best offer on everything at the end only because of that, receiving multiple items offers, but it was rare.  I had one person in 3 months asking for a deal in private, and without best offer and with free shipping literally everyone buy my cards individually

You really need to calculate your "lowest sale price". For me it is $2.29. If I cannot sell a card for that price, I don't list it

I must highly disagree with this statement. I mean i also have a breakeven point just as basic. But if exemple i buy a 200 cards lot, there's no way the whole 200 cards have the exact same value. Unless there all identic, which is almost impossible. So having the same value for all of them does not have sense. I mean let's say we paid $200 for them so $1 each, there's some in the lot worth $20 and some worth $0.50, they are not all worth $1. Need to list those $0.50 to get back the money even it's a ''lost'', not listing them is the real lost. If you don't list the cards your ''losing'' money on, you wont do money on the cards you're suppose to do money on. It's a total at the end, not an individual item count

Not sure if i'm clear

Also what is your "item not recieved" rate? 

Proudly 0%

I don't have a single INR case yet

[rocketscollectibles]

We are not allowed to reduce the cost of shipping, but we are allowed to reduce the cost of selling.NNo

I did not meant to write a ''NNo'' lol But we can't edit

[beavosorus]

@rocketscollectibles 

You don't have to agree with my recommendation, but it is part of my successful business model. 

My older cards I almost always pay 10 cents or less, it is all bulk to me.  So yes a flat $2.29 "lowest price" does work for me.  Sorting and selling this bulk is 90% of my business on Ebay.  Sometimes I make a hefty profit, sometimes I don't and have to list at $2.29.   

*Note that I only sell the poor condition bulk on ebay.  I keep the good stuff for my private store, where the true profit lies.*  

You need to do what your business model requires.   If you don't want to break even, then don't.  Hopefully I shed some light on way some of us work within this "low price model."

There used to be a calculator with all of the ebay (and back then) Paypal fees.  You would enter your shipping and product cost in there and it would figure it all out for you.  

I would recommend doing bulk lots for the stuff you can't sell at a profit (because of ebay fees).  I sell 40 card lots with the lower value stuff.

[rocketscollectibles]

But i mean, if we buy a 10 cards lot for $10 lets say. It does not matter that 9 cards give us back only $1 if the 10th one give back $30. That's what i meant. Why not listing the 9 cards giving us back $1 even it's not a direct profit. It's a total, you end with $31, if you don't list them it's $30

But actually the $2.29 number, are you talking about the number where under that you literally pay for the buyer to take it, or the breakeven point where you're doing $0 profit on a individual card but still have an amount left after fees/shipping

Cause i'll extrem the idea, if we pay $100 for 2 cards and one can be sold for 10$ and the other for $200. Because cards in theory been paid $50/each i mean we won't keep the $10 one because ''we lose $40 on it'' we sell both and it's $210 total

Thanks for sharing tho

There used to be a calculator with all of the ebay (and back then) Paypal fees. You would enter your shipping and product cost in there and it would figure it all out for you.

Found one a few days ago, very helpful

https://www.ebayfeescalculator.com/ca-ebay-fee-calculator/

[rocketscollectibles]

*Note that I only sell the poor condition bulk on ebay. I keep the good stuff for my private store, where the true profit lies.* 

Would you suggest to not sell cards of too different conditions? I personally have moderately played uncommon to top rare holo and i asked myself a few times if i should get rid of my bad cards for the reputation

[ricarmic]

I think you misunderstood the comment about lowest price being $2.29, that is different from every card being $2.29.

When you purchase a bulk lot of 200 cards, as you mentioned the cards have all different retail amounts.

If they had better ones in them and you purchased the cards for $100 then they cost an average of 50c each. Your cost against retail is $100 against whatever the total retail is. For ease of math, assume your total retail prices for the 200 cards is $500, meaning the raw* cost of goods sold is 20%, but individual cards might sell for 10c others $20 each (so your raw profit is 8c on the 10c and $16 on the $20 one). Your job is to make sure when you purchase them you can achieve whatever raw cost of goods you have to achieve - 20% in this example. That one learns over time.

If you figure out your minimum card price, say it is $5 (so your raw profit is $4) then group the under $5 cards together into a large enough group to be worth $5. I don't know the best way to group your stuff, but that is exactly what I do with stamps. (I purchase and sell millions of stamps a year, sadly most are worth only penny(s) each...)

*raw equals only the original cost not other costs of goods sold like fees, shipping, supplies, mileage etc etc etc