How can I stop making a loss??

[colby_brighton]

Hi guys

I can't be the first person to ask but how on earth do I stop myself from making a loss with my auctions. Ive been trying to work out a formula that includes the 12.8% that eBay take plus the extra 30p but I cannot get my head around it. I don't want to have to hike up the postage or overprice my items but it seems that eBay leave me no choice! If it helps the courier I usually use is costing me £2.34 per parcel. Thanks in advance 

[red_magpie]

It's really very easy!

Just calculate what fees will be payable - as a rule of thumb, allow about 15% of the total sale price, including postage. (Assuming you don't add any "paid-for" optional listing features, like a reserve price.)

Then start your listings at the lowest price you would be willing to accept, allowing for the fact that eBay's fees will reduce the amount you receive by about 15%.

My advice would be to add a good safety margin. There's no point in selling things if you're not getting a worthwhile price. Also remember that sooner or later you may get a buyer who wants their money back. Buyers can invent any reason, and eBay makes the seller refund them in full, including postage, and pay for a prepaid return label. If you're hardly making anything on sales, even a single money back guarantee claim can wipe out any small profit you may have made.

[john1297576]

 "I don't want to have to hike up the postage or overprice my items"

Looking at it that way there is no solution. You prices should include expenses, if you cannot sell at a price that covers expenses then it is pointless selling.

Bearing in mind that the 12.8%  comes out of postage as well as welling price, so unless you build that into the postage you will always be losing money.

If Paypal and now ebay have a fixed fee, then so should sellers, so I always like to think that Postage and PACKING covers at least the 30p plus the  12.8%(of the postage). It is no good trying to be as cheap as possible so that you do not lose sales, if you are selling at a loss. 

You either make prices profitable or you have no choice but to sell at a loss.

There is no formula that will make selling at a loss turn into a profit.

[pixiesen2012]

how did you do it before the change to managed payments?

you are actually paying less in fees now than you were when paypal processed the payment,

before you paid 10% to ebay and 2.9% plus 30p to paypal

now you only pay 12.8% plus 30p to ebay!