The aim is selling on eBay is to make a profit. Your item sells and no profit means there is a problem with item pricing. For example, you buy an item for $5 and you sell it for $10 doesn’t make you a $5 profit.
There are few things to consider when you calculate a price for your product.
You need to pay
- insertion fee
- Final value fee
- Promoted listing fee ( If you choose to promote your listing)
- PayPal fee
- Shipping cost
- Packing material costs
The insertion fee is when you list an item on eBay you will be charged a fee. eBay offers 200 listings free for new accounts. If you don’t have that offer, check how much is the insertion fee.
Final value fee
The final value fee is how much you need to pay to eBay for that listing. This includes Bold titles, Subcategories, Classified listing fees, Category fees and etc. This value will show at the bottom of the listing page. So you can adjust the listing options according to your item value.
Promoted Listing fee
Promoted listing means you can pay a little extra amount to promote your listing to show on the eBay search result page. This fee is applicable only if your item is sold from that promoted advertisement. If not no need to pay this amount.
PayPal is the payment processor for eBay selling. Manage payments service still not available in all countries. PayPal charges a 2.9% + $0.30 from the final amount of your sale. PayPal fee calculate before the eBay fee. eBay fee is 10% of a selling price. Now you can do the math.
Do not forget to check and add the shipping cost to the listing. You can add it separately or you can add it to the item price and offer free shipping. Most of the sellers offer free shipping, but the truth is they already added the shipping cost to the item price.
If you live in a country that needs to pay tax or you are selling to a country that charged a tax from the item, do not forget to add this to the item price.
You need packing materials to pack your item before handover it to the shipping company. Such as envelopes, Bags, Boxes, etc. This is also a cost. add this to your item price also.
Makes sure the final price of the item is worth to the buyer. Item value and the price should be matched. Overpriced items will not sell on eBay since there are a lot of competitors are trying to sell the same item.
If you are running an auction, add a higher shipping cost to cover the loss of your sale because of a low price bid.