If you sell low priced items better as business account even if not

[troopster2525-per]

i worked out that while having a business account you pay only a little but more than private...taking into account new buyer fees and if you want to see the money soon the price of tracked delivery id be better off!

basically if you sell cheap items that you used to post as a large letter but then have to charge the tracked price of say £2.80 that extra charge for the buyer as well as 4% and 75p you are less likely to sell.

a business account you are going to be way more likely to sell something because the postage costs can be kept at the lower price so for me when i was going to list my 300 plus vintage coasters and badge collection less then 4 quid each i think i am more likely to sell with the lower prices for the buyers

after all ill still not pay tax to the government as there is the 1k allowance so as far as i can work out...while i will make slightly less per sale its actually going to be more worth while as i will get more sales

[the-nutwood-collection]

I don't know what category coasters and badges are in but, as a business seller in a 12.9% category, you would pay 98p in fees on a £4 item (assuming you're not VAT registered).

As a private seller, the buyer will pay 91p in fees.

Not a lot of difference in fees.  However, if you can post for £1.55 or 85p instead of the Simple Delivery charge of £2.70, then you're better off as a business seller - but you might get more INRs from chancers.

[magpiecorner1]

Can you explain your calculations, I get a much higher fee for the business sale - though not enough to cover the difference between tracked and untracked postage, of course.  Its a mare's nest.

[suelel1968]

Don't forget shop fees or listing fees.  

[the-nutwood-collection]

Maybe my maths is wrong - wouldn't be the first time.  I also ignored the Reg Op fee as it was just a quick calculation to see by how much private sellers will still be able to undercut me.  £1.90 on a £20 sale, £6.50 on a £60 sale.  Not good.

Here's my calculation for a £4 sale, based on a business seller that is not VAT registered, in a 12.9% category.

Category fee 52p, Transaction Charge 30p, Reg Op fee 1p - Total fees 83p.  VAT is 17p, bringing the final total to £1.  The seller receives £3 after fees.

If a private seller wants to absorb the 4% + 75p eBay fee in order to achieve parity of price with a business seller, the listing price must be £3.12.  This will make the item price shown on the listing as £3.99.  The private seller therefore receives 12p more than a business seller. 

It's the eBay Simple Delivery postage charge that makes the difference.  If the item can go 2nd Class LL the postage is £1.55, so the business seller must charge £1.85 to recover £1.55 after eBay fees, making the final price to the buyer £5.85 (£4.00 + £1.85).  The private sale will be £3.99 + £2.70, total £6.69.

However, the buyer won't see the £2.70 until checkout - although I guess, over time, they'll become alert to it - so the price on the private seller's listing will be £3.99, but on the business seller's listing £5.85.  If the buyer is aware that £2.70 will be added at checkout, it will require mental arithmetic on their part to work out that the £5.85 item is actually cheaper than the £3.99 item.

I await the pile-on to tell me that my arithmetic and/or logic is wrong!

[troopster2525-per]

who wants a shop...not me lol

you do not need one

[troopster2525-per]

well on personal accounts soon noone will be able to use 2nd class delivery as all track delivery will be made 100% mandatory first part of this year sometime

which itself will put off most buyers when it comes to cheaper items anyway

so guaranteed more actual sales using a business account that warrants the small drop in profit which can still be added to postage which helps a bit

i charge £1.80 for 2nd class anyway...£1.55 plus the rest for envelope and label etc

[troopster2525-per]

listing fees are included in my thinking

you only lose a tiny bit of money with business account but will get way more sales due to postage charges as first part of this year private accounts wont be able to use 2nd class or 1st class....at all it will need to all be tracked cheapest is £2.70 atleast

so why would a buyer then pay for a item thats 3.99...but plus the 4% then the 75p and then a extra 90p for the extra postage cost....they will not

and clearly anyone with a brain who sells will not take all those extra amounts off their profit as they may as well give it all away free