yatg
Well-known member
Shipping costs are not in there....lets call it a minimum of $5.00
in the above example, the item was sold with "free" shipping.
presumably the seller factored the shipping into the item price.
it could just have easily been 21.99 + 5 shipping and the numbers would be the same.
either way, the seller pays a fee on the total sale of item+shipping+tax
in fact, more expensive items and shipping actually lower the percentage because the order fee and the backdoor fee on sales tax are less significant in relation to the order total.
item 5
shipping 5
tax 1
order total 11
fee 1.80 (11 * .136 + .30) (orders $10 or less are charged a 30 cent order fee)
percent = 18.0 (1.80/10)
item 100
shipping 20
tax 10
order total 130
fee 18.08 (130 * .136 + .40)
percent = 14.7 (18.08 / 120)
don't confuse what the buyer pays for shipping with what the seller actually pays for shipping,
what the seller pays for shipping has nothing to do with the ebay fees.
the difference does factor in to the net profit on the item.
my rule of thumb is the buyer's shipping cost is about 20% more than the actual shipping cost to cover ebay fees and related shipping expenses.
there are real costs in shipping that you need to account for.
materials (boxes,envelopes,packing,tape)
fuel if you have to drive the to post office or UPS or FedEx.



