Things You'll Need:
- Internet
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Step 1
Slow Down! ~ Will it sell at all? This is a better first question. Before you list an item on eBay, do some research. Conduct a search for the same item you are selling. View search results in the order "Ending Today". This will show you all the auctions for the same item that are about to end. Look at the bids... are there any bids? If you are finding several auctions for the same item ending without bidders, you might want to consider a drastically different auction approach OR not listing the item at all.
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Step 2
Similar Items ~ Browse through the search results again. What is the average bid on auctions that are about to end?
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Step 3
True Profit ~ The final sale price doesn't tell you much about profit. Just because an item sold for $10.00 does not mean the seller made anywhere near that amount. To find the true profit, examine shipping costs and the advertising (if any) that the seller paid for.
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Step 4
Shipping Cost ~ Use the shipping calculator on usps.com to determine the actual cost of shipping the item. When calculating, select a destination that is far from you, but still within the United States. This will be your worst case scenario shipping. How does it compare to the rate charged by other sellers? If their rates are higher, you can assume part of the shipping charge is contributed to overall profits. If the shipping charges are significantly lower, you can subtract the difference from the final sale price. EXAMPLE: A toy truck sells for $10.00. The Seller charges $10.00 shipping. The actual cost of shipping was $12.00. The $2.00 shipping difference is subtracted from the final sale price. So, the final sale price, considering shipping, would actually be $8.00.
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Step 5
Advertising ~ You may have no interest in the expensive advertising eBay offers. However, to find the average sale price of your item, you will need to consider the advertising others have used. Whatever amount was paid for advertising, you must subtract that from the final sale price. EXAMPLE: A painting sells for $15.00. The painting auction was advertised with the Feature Plus option. If Feature Plus listings are $20.00 (price may have increased or decreased), you must subtract that from the final sale price. So, even though a painting sold for $15.00, when you subtract $20.00 for advertising, the seller actually lost $5.00 on the sale.
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Step 6
Calculate ~ Combine the information to come up with the average true profit. Example: A shirt sold for $15.00. The shipping charge was $5.00, but actually shipping was $8.00. Subtract the $3.00 shipping difference from the $15.00 sale price. Next, subtract the cost of advertising the auction. Let's say $5.00 was spent on advertising. So, true profit = Sale Price - Shipping Difference - Advertising. OR true profit = $15.00 - $3.00 - $5.00. True Profit = $7.00. That doesn't take into account the seller's original investment for the item.
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Step 7
What's It Worth ~ This is a new feature provided by eBay. (see a direct link in "resources" listed below). This is an entertaining feature, but be aware that it is not a good indicator of the sale price you can expect.
Comments
psychonurse said
on 6/22/2009 Good explanation of how sellers fare on ebay. 5****
Hapworth said
on 7/1/2008 Good advice. I always search items similar to mine.
Susanh said
on 6/29/2008 Great article Kate! Also, many times people don't realize there are listing fees, final value fees, and a fee if your buyer uses PayPal. All of those cut into profits as well.