Auction Fees: An Aternative

Action fees and related fees are a matter of business.

 

I haven't sold on eBay for a long long time  sold some software i didn't need. check the figures below. PayPal is owned by eBay

$44.00 - final sold price
$-3.58 - eBay commission
$-1.58 - PayPal commission
$-2.97 - shipping costs

sold for only $44, I lost $8.13

 
$35.87 - net profit  ( This may not be the actual net profit. They did not share with me how much the item cost, nor how much (if any) use they got out of it.

 

Had this person sold an item at a local auction in their area, they would have spent about 20% of the selling price as an auction fee.

 

Consider the fact that if a seller subtracts all of the expenses from the selling price they decrease the net profit.

 

Alternative to paying fees out of your pocket:

Set a price you will accept for your item.

Estimate the fees that will be charged. You can figure a low and also a best case price.

Add your estimated expenses to your lowest selling price. 

Then add 12-15%

Using this business method, it is very hard to lose money.

 

Using our method of cost analysis found in our importing book, you should have a very educated and calculated minimum net profit. Or if you can buy and sell while making a profit. It is really simple to come very close to knowing if you can make any money.

Blessing,
Walter
http://www.importingforauctions.com