If you want the main point, and a formula used to NOT lose money on ebay, skip to the red text below!!
http://www.ebay.com/itm/NEW-Style-1...em46144a5b51In this sold listing, the seller sold 10 $100 for $1,130.6 after shipping.
The Fees involved are:
10% of selling price + shipping for
ebay2.9% + $0.30 per transaction
The percentages can be written as 0.129. The reciprocal is 0.871.
$1,130.6 multiplied by .871 and you get:
$984.75 -$0.30 paypal fee
If they want to insure the package, shipping will be in the $10 range, give or take.
So in the end, about $975. That's a net loss of $25, without even considering time or gas.
Why do I make these posts? Because I LOVE all the cool people here on CCF. I don't want CCF users losing money!For any sales, not just new hundreds.
Don't get scammed by
ebay! Use my formula to make sure you DON'T get burned!
The formula is simple. Take the price of your item. Let's say a new $100 bill, bought at face value. To break even, you need to add in shipping FIRST. Assume high shipping. Maybe $7 total cost (packing, insurance, etc)
Then, take $107 and divide by 0.871.
Doing that gives you about $122.85. Then add in the $0.30 flat fee from paypal, = $123.15
That is your price to
break even before considering gas. Here I would just round up to $125 for breaking even.
I have seen a few $100 bills sell for $135. This means the seller made about $17 for
ebay, $7 for USPS, and $10 for themselves.
Know what you're doing so you don't lose money!
ebay is set up to confuse you.
ebay fees aren't taken out right away so it looks like you made more. You get a bill much later.
Paypal (owned by
ebay) fees are on paypal's website, but you have to find them and they are actually somewhat hard to find.
I'm simply trying to show everyone a simple formula to make sure you don't get lost in the fees. Not on $100 bill sales, in general.
Remember:
Cost of your item + shipping cost = total selling price
Total selling price/0.871 = breaking even
Posted 10/19/2013 9:49 pm
