Several listeners have pointed out a mistake I’ve made over the past year. I have stated many times that I assume that eBay/Paypal fees are about 17% of our profit. But as Mike points out, I’ve been way off base:
I understand for Paypal, it’s 2.9% plus $0.30 USD of the amount you receive.
eBay is up to 8% (minus 20% for Top Rated Sellers) of final value plus maybe $.20 listing fee if that applies and an average of $.22 an item sold for the monthly store fee.
So eBay/Payal fees are in reality closer to 11% of the profit we make. In my defense, I came up with that number is our early selling days as a quick way to estimate our expenses. I was probably including all our costs such as taxes, storage, etc. But it’s good to be clear on the numbers. Thanks to everyone who pointed out my error.
This is an open thread. A perfect place to sort out your own errors…so have at it. We hope you guys are having a good week.
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