Not understanding your costs is a prescription for disaster.
Always remember that your eBay business is a business. If you want success on eBay you have to understand and control your eBay fees and other costs.
It is very easy for a new seller to get caught up in the excitement of selling on eBay and not pay attention to the costs involved. Before deciding whether to sell an item on eBay, and what to sell it for (i.e. reserve, low or high starting bid, fixed price auction, etc.), you need to understand all the costs involved.
First of all there is the "listing fee." There is also a selling fee, or what eBay calls the final value fee that will be determined by the item actually sells for. There is also a fee to process a PayPal or credit card sale. If you use an auction management service such as Vendio or EZLister then you have their fees. Don’t forget shipping, and the cost of the shipping materials.
If you are selling items you purchased wholesale, were there shipping charges to get it to you? Did you pay sales tax on the item?
eBay businesses fail for many reasons, but one of the most-often cited is because the eBay sellers did not understand all their costs. They sell a lot of merchandise, but at the end of the month there is no money left over after they pay all of their fees and bills.
A program such as QuickBooks could be one of your best investments. QuickBooks will allow you to track every expense, down to the penny, and allocate the costs to different categories so you will fully understand where every dollar is going and if it was well spent.
For More Tips on how to be a successful eBay seller check out 99 Tips for Buying and Selling on eBay. It’s completely free.
- The Complete eBay Marketing System, by eBay PowerSeller, Skip McGrath
Manage and run your eBay business and win more auctions with the powerful complete eBay marketing system