Ebay + Paypal FEES is killing my business, it adds approx 15% of sales amount. What is my options

[ozkish]

Hello

I am selling items worth 800~ 810 AUD each, I recently setup a store i saw my first ebay is appox 10% of the sale value and Paypal 3% TOTAL 13~15%.  For me it brings me to my cost price.

Can someone suggest any options.

ITEM Category : Mobile Phones Brand New

Thanks

[chameleon54]

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@clarry100 wrote:

ALL the costs of doing business here (or anywhere) need to be factored into your end sale price.

Once you know all your costs from stock purchase thru to paying tax/GST then you add on the profit factor you will be happy with.

If that final sale price is not market competitive then something along the way has to change.

ebay/paypal fees are pretty much fixed so you cant change that too much.

Work on the elements that are within your control to change.

If nothing works then you had better quit selling those items and find another product.

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Clarry,s right I,m afraid. If you are selling 3 phones a month, you are trying to compete with large stores and sellers who would be selling possibly hundreds a month. They have much bigger buying power so can sell much cheaper than you can afford to and still make money. Unless you have found a way to purchase stock much cheaper than your competiters it is going to be a difficult task to make it pay.

The same applies to many succesfull ebay businesses. They either have found a way to purchase stock at extremly cheap prices, found a niche product or some other system such as being the only Australian supplier of a product, express post of all items etc. There are still products that are not readily supplied on ebay and many "nooks and crannies" in the ebay and online selling system that can provide a competative edge to your opposition. You just need to think outside the box a bit to find the oppurtunities.

[kopenhagen5]

As Duck said.   And increase your price by 10-20 dollars.

[digital*ghost]

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@kopenhagen5 wrote:

As Duck said.   

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Without a store, FVF is 9.9% of $860 - that's $85.14

With a basic store, FVF is (supposed to be) 6% - that's $51.60, a $33+ difference.

One sale per month and the $19.95 fee has been worth it.

[kopenhagen5]

You're right and I thought of that but also thought if you have a couple months without sales.

As well as taking away the pressure of needing sales, hence being too competitive on the price.

But phones are just the wrong items to be selling on ebay now IMO, due to buyer confidence and with most members suggesting to purchase electronics in B&M stores with genuine warranties.